Tiger to invest $100m in Indian vehicle repair startup GoMechanic

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Tiger Global, the US investment fund that made a string of big bets on Indian startups in a span of a few weeks, is looking to write another large cheque soon for GoMechanic, a Gurugram-based vehicle service and repair startup, said two people aware of the development.

The American investment firm is in discussions to invest up to $100 million in GoMechanic, at a likely valuation of as much as $500 million, they said on condition of anonymity.

“This is a highly unorganized and competitive market, and the opportunity is big. The pandemic has seen customers becoming more comfortable with online channels for booking cars, and the same is also being seen with the after-sales service market. It also helps the standalone service outlets grow business at a time when things are becoming difficult for them with the rising complexity of cars as more stringent standards are being introduced and customer doubts over the authenticity of spare parts used,” said one of the people cited above.

An email sent to Tiger Global did not elicit a response, while messages sent to a spokesperson for GoMechanic too remained unanswered.

Founded by Kushal Karwa, Amit Bhasin, Rishabh Karwa and Nitin Rana, GoMechanic is a network of tech-enabled car service centres.

The startup claims to have more than 500 service partners on its platform and over 10,000 car services a month, according to its website.

Last June, the startup raised an undisclosed sum from Pawan Munjal, chairman and managing director of Hero MotoCorp Ltd, the country’s largest two-wheeler manufacturer. In December 2019, it raised 105 crore in Series-B funding led by Chiratae Ventures and Sequoia Capital, with Orios Venture Partners also participating. The startup also counts Snapdeal founders Kunal Bahl and Rohit Bansal and angel investor Dhianu Das among its investors.

Tiger Global, known for its big Flipkart bet, has made several major bets in Indian startups in just three months, in the process creating almost half of dozen unicorns or startups valued at over a billion dollars.

Earlier this month, it led a $500 million round in Sharechat, valuing it at over $2 billion.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.