Sequoia-backed auto maintenance startup raises funding from Pawan Munjal

By Narinder Kapur

  • 18 Jun 2020
Credit: Pixabay

Targetone Innovations Pvt. Ltd, which operates automobile maintenance and servicing startup GoMechanic, has raised funding from Pawan Munjal, the managing director and chief executive officer of Hero MotoCorp.

In a statement, New Delhi-based GoMechanic said the investment by Munjal was made in his personal capacity. 

It comes in addition to the company’s Series B funding round in December last year, as part of which it raised $14.7 million (around Rs 105 crore).

The sum invested by Munjal has not been disclosed.

The company will use the capital infusion to enhance its technological infrastructure, support its geographical expansion and streamline its spare parts procurement process.

“We are thrilled to have the opportunity to benefit from Dr Munjal’s depth of experience and knowledge about our automotive industry as we take confident steps to organise India’s humongous car and bike service market,” GoMechanic co-founder Amit Bhasin said.

The company was founded by Bhasin, Kushal Karwa, Rishabh Karwa and Nitin Rana in 2016. 

It operates on an asset-light model with centralised bulk procurement of spare parts from original equipment manufacturers, which it says allows it to pass on significant cost savings to end-consumers.

Some of the services it provides include car maintenance, cleaning, wheel and rim care and denting services. 

It has a presence in regions such as Delhi, Mumbai, Pune, Ghaziabad, Bengaluru, Chandigarh, and Chennai.

Its Series B round received backing from investors such as Chiratae Ventures and Sequoia Capital, as well as Orios Venture Partners. 

In January last year, 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) 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.

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