The world’s leading investor, SoftBank Group is planning to invest $35 million in the Indian car service and repair start-up GoMechanic through the company’s Vision Fund in India. Billionaire Masayoshi Son-led SoftBank, which is one of the leading start-up investors in India, has invested $4 billion in the country, according to a report by Venture Intelligence.
According to the report by Reuters, this would be the Japanese investors’ smallest investment in the company through its Vision Fund at a valuation of $600 to $700 million. The Japanese Conglomerate had been in discussions with GoMechanics for more than nine months.
The development comes at a time when global investor has been resorting to cost-cutting measures after the company incurred a loss of $23 billion last year, which is the highest in the company’s corporate history. Owing to this, Son had hinted at resorting to cost-cutting measures. Last month, SoftBank laid off 20 per cent of its Vision Fund workforce. Son has also advised the company executives to take a measured approach and to invest smaller funds in early-age investments, as per the Reuters report. Some of SoftBank's investment in India include Paytm and Unacademy.
Other investors such as Tiger Global and Malaysian sovereign fund Khazanah are also planning to invest $100 million. Founded in 2016, GoMechanics has so far provided car repair services to over two million customers.