Auto component maker Lifelong Group acquires after-sales service start-up GoMechanic

Auto component maker Lifelong Group announced on Wednesday that it has acquired automotive aftermarket startup GoMechanic for an undisclosed amount.

GoMechanic has been acquired by Lifelong Group as the majority shareholder of the Servizzy Consortium, the Delhi-based company said in a statement.

Lifelong Group is an Indian company established in 1985 and seeks to expand its business in the automotive maintenance and repair industry.

This acquisition and new ownership structure with Lifelong Group, an automotive component, medical device and e-commerce player, heralds a new phase for GoMechanic’s business, he added.

The Servizzy consortium, which will be led by the Lifelong Group, emerged as the strongest bid in this process to acquire the GoMechanic business under the terms and conditions contained in the agreement, he noted. .

Financial details regarding the deal were not shared.

In January this year, GoMechanic co-founder Amit Bhasin admitted errors in financial reporting, following which a forensic audit was ordered and a corporate restructuring undertaken which will see 70% of the approximately 1,000 employees to be made redundant.

Almost two years after raising a mammoth $42 million (about Rs 345 crore) in funding, it emerged that GoMechanic had prepared its financial books by inflating its revenue.

GoMechanic responded to recent challenges by continuing operations at 800 shops and servicing 30,000 vehicles in January.

“The acquisition of the GoMechanic business aligns with our strategic vision to synergize Lifelong Group’s proven expertise in the automotive industry. We are focused on growing GoMechanic’s business journey and will continue to revolutionize the ‘Indian automotive service and repair industry’, a Lifelong Group official spokesperson said.

Lifelong Group diversified into automotive component manufacturing in 1995, medical devices in 2005, and e-commerce in 2015.

The business has grown from an annual turnover of $0.5 million (about Rs 4 crore) in 1995 to over $175 million (about Rs 1,440 crore) today and is growing. addresses major automotive industry customers like Hero Moto, General Motors, Arvin Meritor, Stanley Black & Decker, etc.

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