GoMechanic, a technology-enabled auto after-sales service and spare parts company, on Wednesday said it has raised $42 million (Rs 352 crore) as part of its Series C funding round.
The funding was led by new investor Tiger Global Management, said GoMechanic in a statement.
Existing investors Sequoia Capital India, Orios Venture Partners and Chiratae Ventures also participated in this funding round.
GoMechanic’s filings showed that it had already pulled in part of these funds, TechCircle recently reported.
GoMechanic, which is operated by Targetone Innovations Pvt Ltd, will use the fresh capital to boost its growth in Tier II and III cities in the country. The company aims to increase its presence from 35 cities to over 100 cities in the country.
Part of the funds will also be deployed to ramp up the technology team and launch operations in international markets. The firm has a technology team of 60.
The fundraise also includes $5 million buyback of employee stock ownership plans (ESOPs) of early workers.
GoMechanic was founded in 2016 by Amit Bhasin and Kushal Karwa. The company 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 currently services more than two million cars annually and is targeting 10 million customers by 2021.
Prior to this funding, GoMechanic raised $14.7 million in a Series B funding round in December 2019.
In January 2019, GoMechanic 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) from seed investment and innovation platform Venture Catalysts. In 2017, GoMechanic acquired car servicing and repair startup VOW CarClinic.
Tiger Global has been aggressively investing in India this year. The investor has made 20 bets in 2021 in India which is equivalent to what it did in 2020.
Out of these 20 bets, 10 were new investments, already more than the nine fresh investments made last year.
In fresh investments this year, Tiger Global led or co-led funding rounds in investment platform Next Billion Technologies Pvt Ltd or Groww, conversational messaging platform Gupshup Technology India Pvt Ltd, and Indian social network ShareChat (Mohalla Technology Pvt Ltd), making them all unicorns in the process. These were new verticals for the firm.