Car servicing startup GoMechanic has announced that it has achieved earnings before interest, tax, depreciation, and amortisation (EBITDA) profitability in the first quarter of the fiscal year 2024-25 (FY25). The startup reported a revenue of INR 85 Cr in this quarter.
Following its acquisition by Servizzy in March last year, GoMechanic’s revenue has increased three-fold. The company reported a revenue of INR 210 Cr from services, spares, and accessories in FY24.
The startup has also expanded its network significantly, now boasting over 600 service workshops across more than 50 cities, and catering to over 30,000 cars monthly. The company claims to have achieved a 50% repeat customer rate in the last fiscal year.
“We have managed to strike a balance between profitability and growth, ensuring that we continue to provide exceptional service to our customers while expanding our footprint. Our aim is to service 1 out of 10 cars in the country by FY27, and by then, we plan to be present in over 1,000 cities across India,” said GoMechanic cofounder and CEO Himanshu Arora.
One of the key factors contributing to GoMechanic’s success is the rapid scaling of its new offerings. The company’s accessories vertical reported a revenue of INR 11.2 Cr in Q1 FY25, making up more than 13% of its INR 85 Cr topline.
Additionally, GoMechanic opened 11 Luxe stores in FY24, catering to luxury cars. The startup also plans to open electric vehicle (EV)-focused service centres in major cities including Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai to further boost its numbers.
The company’s turnaround follows its acquisition by Lifelong Group’s subsidiary Servizzy in a fire sale deal valued at INR 220 Cr in March 2023.
Founded in 2016 by Amit Bhasin, Kushal Karwa, Nitin Rana, and Rishabh Karwa, GoMechanic faced significant challenges last year. Cofounder Bhasin publicly admitted to falsifying numbers, which prompted an investor-led forensic audit. The cofounders allegedly falsified bank statements, inflated revenues, and misappropriated funds as early as GoMechanic’s seed funding round in 2017.
In response to these allegations, the Economic Offences Wing (EoW) of the Delhi Police registered an FIR against the original cofounders and key management personnel (KMP) for fraud and cheating, based on a complaint filed by GoMechanic’s key investors in June 2023.
Since March 2023, Himanshu Arora and Muskan Kakkar have taken over the operations of the startup. In November last year, GoMechanic raised $6 Mn in a funding round led by an undisclosed family office, with participation from existing investors, including Stride Ventures.