Targetone Innovations Pvt. Ltd, which operates automobile maintenance and servicing startup GoMechanic, has raised $14.7 million (Rs 105 crore at current exchange rates) in a Series B funding round.
The investment was led by existing investors Chiratae Ventures and Sequoia Capital. Another existing backer – Orios Venture Partners – also participated, the startup said in a statement.
Gurugram-based GoMechanic said it will use the capital to grow its operations and expand its presence to other regions in India.
“We... have a set of strong investors who can support us in further rounds as we attempt to introduce more pro-customer services in the industry,” GoMechanic co-founder Amit Bhasin said.
Chiratae executive director Ranjith Menon said the investment would help GoMechanic in addressing the gap in the car servicing market through technology-first solutions.
“With their full-stack approach, they are the largest player to aggregate unorganised workshops and provide a truly seamless customer experience,” Sequoia Capital India vice president Abhishek Mohan said.
The company was founded in 2016 by Bhasin and Kushal Karwa. According to its website, GoMechanic provides services such as car maintenance, cleaning, wheel and rim care and denting services. The startup says it seeks to organise the car servicing market through its technology platform.
It claims to have serviced over two million cars for more than one million customers, and has over 150 workshops around the country. It has a presence in cities such as Delhi, Mumbai, Pune, Ghaziabad, Bengaluru, Chandigarh and Chennai.
In January, the company raised $4.9 million (around Rs 35 crore) in its Series A funding round, which was led by Sequoia and Orios Venture Partners. In December 2016, it raised $250,000 (nearly Rs 1.68 crore) in funding from seed investment and innovation platform Venture Catalysts.
In 2017, GoMechanic acquired car servicing and repair startup VOW CarClinic, taking on board all its customers, technology assets and service partners. At the time, Karwa said the deal would increase GoMechanic’s capability and strengthen its customer focus.