An NYC-based investment firm, Tiger Global Management is in talks to lead a new fundraising round of USD 50-80 million in GoMechanic, an Indian firm that manages a network of technology-enabled vehicle servicing centers and spare parts.
According to sources, the Gurugram-based firm has been valued at USD 1.2 billion in the proposed talks. The valuation is significantly higher than the USD 325 million value reported during its Series C funding in June last year.
The terms and conditions of the agreement have not been finalized and are subject to regulatory changes, according to sources. However, both the companies have refrained from commenting on the matter.
For those unaware, GoMechanic is a six-year-old startup that has strong backers like Tiger Global and Sequoia Capital India and is looking to create an auto after-market ecosystem. It enables customers to use the company's eponymous app to order car services from the comfort of their own homes.
It is worth mentioning here that, GoMechanic is a network of tech-enabled car service outlets founded by Rishabh Karwa, Amit Bhasin, Kushal Karwa, and Nitin Rana. Sequoia Capital, Orios Venture Partners, and Chiratae Ventures are among the company's investors.
The company has established a network of over 900 workshops in over 60 locations across India, Europe, the United Kingdom, the Middle East, and North Africa. According to an update it sent to its investors last month, it has serviced over 800,000 vehicles.
As per GoMechanic's presentation to investors, the startup's yearly gross sales were over USD 166 million, and its annual net revenue was over USD 50 million as of December last year.
Meanwhile, Tiger Global has also invested in Spinny, which is a Gurugram-based firm that helps people to purchase and sell secondhand cars.
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