Comments
After admitting to financial irregularities, GoMechanic Business has now been acquired by the Lifelong Group as the majority shareholder under Servizzy.
Established in 1985, the Lifelong Group manufactures automotive components and medical devices, besides being an e-commerce player. Its customers include Hero Moto Corp, General Motors, Arvin Meritor, and Stanley Black & Decker, among others.
The acquisition of GoMechanic, with its network of 800 car repair workshops across 20 cities, will aid Lifelong Group’s plans to expand its operations in the automotive service and repair industry.
“Due to the recent financial difficulties at GoMechanic, the board and shareholders with support from Stride Ventures initiated a speedy and widely publicised sale process to ensure the continuity of business. GoMechanic’s technology-driven approach, competitive pricing and brand recognition were some the core value proposition for this acquisition,” the Lifelong Group said in a statement.
Lifelong added that the transaction will help preserve the ecosystem at large and the livelihood of Gomechanic employees.
A Lifelong Group spokesperson said, “Acquisition of the GoMechanic business aligns with our strategic vision of synergising the Lifelong Group’s proven expertise in the automotive industry. We are focused on building upon GoMechanic’s business journey, and will continue revolutionising the Indian automotive service and repair industry.”
In January 2023, 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.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.