Almost a month after GoMechanic CEO confessed to financial irregularities, the Sequoia-backed company said in a statement that it is now focused on achieving operational break-even and profitability at an aggregate, annual P&L level as soon as possible. 

GoMechanic said it has serviced 30,000 vehicles in January and 90 per cent (around 800) of its workshops remain active, which gives it the required confidence to achieve the profitability goal. “GoMechanic continues to see strong auto servicing volumes in most of its markets, with Delhi-NCR, contributing the most. Other top geographies are also showing good traction, sustaining the business on a month-on-month basis in terms of car servicing volumes,” the company added. 

Miles programme

Further, GoMechanic said it has added 3000 members to its Miles programme which currently has 60,000 members. GoMechanic Miles is a custom plan for car’s annual maintenance.

Commenting on the current business scenario, a GoMechanic spokesperson said, “First and foremost we would like to thank each of our stakeholders who stayed with us through thick and thin, particularly the service centre partners. The entire founding team remains focused on not just surmounting the formidable challenge before us but in ensuring a sustainable solution and not just a temporary quick fix.” 

Financial misreporting

The spokesperson added that besides recalibration on the business strategy front, GoMechanic took some painful but unavoidable decisions last month. GoMechanic laid off 70 per cent (1,000 employees) of its workforce as the co-founder confessed to financial misreporting. 

At that time, GoMechanic co-Founder Amit Bhasin wrote on LinkedIn, “Our passion to survive the intrinsic challenges of this sector, and manage capital, took the better of us and we made errors in judgment as we followed growth at all costs, including in regard to financial reporting, which we deeply regret.”

Founded in 2016, GoMechanic is technology-enabled network of car service centres. The company said it has served over 10 lakh customers and 15 lakh cars in the last seven years. Currently, GoMechanic has employed 4000 plus professionals across 20+ cities in India, including DelhiNCR, Hyderabad, Mumbai, Pune, Bengaluru, Chandigarh, Ahmedabad, Jaipur and Chennai. 

“What is really heartening about these numbers is that these have been achieved despite us slashing the marketing costs substantially in January. We’re continuing to invest substantially in the upskilling of auto service professionals through the NSDC partnership. We remain committed to empowering the largely underserved workforce of the unorganized Indian automotive service & repair industry,” the company spokesperson added.

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