[TusharK]

Indian car repair start-up GoMechanic has been acquired by a consortium led by car parts manufacturer Lifelong Group.



GoMechanic has been in the news recently after co-founder Amit Bhasin admitted to financial misreporting. It was followed by massive layoffs and a third-party audit of the company’s accounts.

Without divulging the details of the deal, Lifelong Group stated that the transaction would assist in preserving the ecosystem at large and also help provide a continued livelihood to the employees of GoMechanic.

The Lifelong Group are manufacturers of parts and assemblies for Hero MotoCorp, General Motors, Arvin Meritor, Magna International Inc and BorWarner Inc, among others. The deal will help the company expand its operations in the automotive service and repair sector.

GoMechanic was founded in 2016. It operates a network of partner garages that offer car repair services. The platform is said to have over 900 garages in more than 40 cities. Some of its major investors include Tiger Global, Sequoia Capital and Chiratae Ventures.

Source: ET

Link to Team-BHP News

[Dhillon]

Yea, some people said that it was a FLASH Sale. Investors have lost a lot of money. But I am happy to read statement from the acquiring group that it will help to provide continued livelihood to the employees.

[GTO]

MoneyControl had reported that GoMechanic was desperately talking to well-funded startups to buy them (link to article). Clearly, there was no agreement on price.

GoMechanic would've gone for chump change. Never heard about Lifelong Group, they seem like a small player, but have some respectable brands on their client list.

For those who want to read more on the GoMechanic fraud, here's our older thread (GoMechanic admits to financial misreporting; lays off 70% of its staff). I hope the good writers @ the-ken.com do a detailed story on the entire GoMechanic saga. Ultimate boom & bust story.

[germin]

Originally Posted by GTO

I hope the good writers @ the-ken.com do a detailed story on the entire GoMechanic saga. Ultimate boom & bust story.

Well, they have come up with one now GoMechanic is sold for parts

[GTO]

Originally Posted by germin

Well, they have come up with one now GoMechanic is sold for parts

Apparently, this fraud company that was seeking a billion dollar valuation just a year back was sold for peanuts. The asking price was $10 million, so we can only guess what the actual desperate selling price was:

A top executive at a company that was evaluating the purchase of GoMechanic said: “The company had a Rs 150-160 crore debt. It only made sense for us to consider if it came at a significant discount. We were offered the company for around $10 million (Rs 75-80 crore).”