This development comes two months after Sequoia-backed GoMechanic’s cofounder Amit Bhasin publicly admitted to financial misreporting
Lifelong Group has been looking to expand its operations in the automotive service and repair industry
Acquisition of the GoMechanic business, aligns with our strategic vision of synergising the Lifelong Group’s proven expertise in the automotive industry: Lifelong Group spokesperson
Two months after Sequoia-backed GoMechanic’s cofounder Amit Bhasin publicly admitted to financial misreporting, the after-sales service startup has found a buyer in a consortium led by Lifelong Group.
The troubled startup GoMechanic Business has been acquired by the Lifelong Group as the Indian company has been looking to expand its operations in the automotive service and repair industry.
“Due to the recent financial difficulties at GoMechanic, the board and shareholders with support from Stride Ventures initiated a speedy and widely publicised sale process to ensure the continuity of business,” the Lifelong Group said in a statement.
The core value proposition offered by GoMechanic was quickly recognised by the buyers, the company added.
This transaction will assist in preserving the ecosystem at large and also enable providing continued livelihood to the employees at Gomechanic.
“Acquisition of the GoMechanic business, aligns with our strategic vision of synergising the Lifelong Group’s proven expertise in the automotive industry. We are focused on building upon GoMechanic’s business journey, and will continue revolutionising the Indian automotive service and repair industry,” the official spokesperson from Lifelong Group said.
Founded in 2016 by Amit Bhasin, Kushal Karwa, Nitin Rana and Rishabh Karwa, GoMechanic connects car owners with repair service providers in their area. Besides, it sells original spare parts and accessories for automobiles on its website.
Following the public admission of fault, GoMechanic’s second largest institutional shareholder, Orios Venture Partners, wrote down its investment in the car servicing startup. Another investor, Sequoia, also launched a forensic audit against the startup.
The troubled startup began exploring a sale after Bhasin admitted to committing ‘errors in judgment’ in financial reporting while trying to pursue growth. It reportedly held talks with multiple companies, including CarTrade, Cars24 and Spinny, for a buyout.
(This is a developing story)