Lifelong Group-led consortium acquires troubled auto services start-up GoMechanic

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Automotive parts manufacturer lifelong group said Wednesday it has acquired a stressed-out auto after-sales service startup GoMechanic for an unknown amount. The GoMechanic Business has been acquired by the Lifelong Group as a majority shareholder under the Servizzy consortium, the Delhi-based company said in a statement.

The Lifelong Group is an Indian company founded in 1985 that aims to expand its business in the car service and repair industry.

This acquisition and new ownership structure with Lifelong Group, a manufacturer of auto parts, medical devices and e-commerce player, heralds a new phase for GoMechanic’s business, it added.

The Servizzy Consortium, led by the Lifelong Group, emerged as the strongest bid in this process for the acquisition of the GoMechanic Business in accordance with the terms of the agreement, it noted.

Financial details of the deal were not shared.

Co-founded GoMechanic in January this year Amit Bhasin admitted to errors in financial reporting, after which a forensic audit was ordered and a company restructuring was carried out, which will see the layoff of 70 percent of the 1,000 workforce.

Nearly two years after raising a whopping $42 million in funding, GoMechanic found itself cooking its financial books by increasing revenue.

GoMechanic managed to overcome the recent challenges by continuing operations in 800 workshops and servicing 30,000 vehicles in January.

“The acquisition of the GoMechanic business aligns with our strategic vision to combine Lifelong Group’s proven expertise in the automotive industry. We are focused on building on GoMechanic’s business journey and will revolutionize the Indian automotive service and repair industry,” said a Lifelong Group. said an official spokesman.

Lifelong Group diversified into auto parts production in 1995, medical devices in 2005 and e-commerce in 2015.

The company has grown from annual sales of USD 0.5 million in 1995 to more than USD 175 million today and serves major automotive customers such as Hero Moto Corpgeneral engines, Arvin MeritorStanley Black & Decker etc.

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