GoMechanic approaches Cars24 and Spinny for a prospective buyout following layoffs
- ByStartupStory | January 24, 2023
GoMechanic, a company backed by Sequoia and Softbank that provides car washing and repair services, has made purchase inquiries with Cars24 and Spinny among others. According to Moneycontrol, the creators have issued a proposal to these two startups as part of preliminary discussions for a prospective buyout. According to a person who spoke to the publication, GoMechanic has contacted the majority of the ecosystem’s participants.
The announcement of a prospective sell-off comes a week after the business let go of 70% of its workers and admitted to misleading investors about its costs and sales figures. In a LinkedIn post, the company’s CEO, Amit Bhasin, admitted to tampering with financial figures without going into further detail.
In a recent pitch to SoftBank, GoMechanic exaggerated its sales figures and displayed lower costs than it actually incurred, according to an earlier article by YourStory.
According to reports, the Gurgaon-based business was in discussions with Softbank and Malaysia’s Khazanah Nasional to raise $75–80 million at a valuation of $60–650 million. Existing investors in the startup, Orios Venture Partners, Chiratae Ventures, and Sequoia Capital, have once again hired EY to look into the matter. Tiger Global Management led the previous $420 million Series A investment at a $285 million valuation for GoMechanic.
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