Lifelong Group, an Indian conglomerate focussed on auto component manufacturing, medical devices and e-commerce, has acquired a majority stake in GoMechanic under the Servizzy consortium. The move comes after GoMechanic recently faced financial difficulties and the board and stakeholders with support from Stride Ventures initiated the sale process to ensure the continuity of GoMechanic's business.
Lifelong India Private Limited is a private company established in 1985. The group diversified into auto component manufacturing in 1995, medical devices in 2005, and e-commerce in 2015. The business has grown from an annual revenue of $0.5 million in 1995 to over $175 million today and caters to major customers in the automotive industry, including Hero Moto Corp, General Motors, Arvin Meritor, and Stanley Black & Deck.
The Servizzy consortium emerged as the strongest bidder in the process, acquiring GoMechanic in accordance with the terms and conditions contained in the agreement. Lifelong Group, which was established in 1985 and has been looking to expand its operations in the automotive service and repair industry, will lead the Servizzy consortium.
GoMechanic's technology-driven approach, competitive pricing and strong brand recognition have allowed it to remain a market leader in the underdeveloped Indian automotive service and repair industry. The acquisition of GoMechanic by Lifelong Group aligns with the latter's strategic vision of synergizing its proven expertise in the automotive industry.
The move marks a new chapter in GoMechanic's journey, offering a new lease of life to the platform and enabling the continued livelihood of its employees.
Despite facing recent challenges, GoMechanic continued operations across 800 workshops, servicing 30,000 vehicles in January. The move showcased the strength of its core business model and the undeniable value creation it offers. The acquisition will assist in preserving the ecosystem at large, ultimately contributing to the growth and development of the Indian automotive service and repair industry.
GoMechanic, a Gurugram-based automobile repair start-up, made headlines in early 2023 when it announced layoffs of around 70 per cent of its workforce and directed the remaining employees to work without pay for the next three months. The move came amid concerns about errors in financial reporting and the company announced that a third-party firm will be conducting an audit of the company.
Furthermore, early this month GoMechanic allegedly defaulted on payments worth over 1.25 crore to a Gurugram-based digital marketing company, DigiRovers.
