Auto elements maker Lifelong Group on Wednesday stated it has acquired harassed vehicle after-sales service startup GoMechanic for an undisclosed quantity.
The GoMechanic enterprise has been acquired by the Lifelong Group as the bulk shareholder underneath Servizzy consortium, the Delhi-based agency stated in a press release.
The Lifelong Group is an Indian firm established in 1985 and has been seeking to develop its operations within the automotive service and restore business.
This acquisition and new possession construction with Lifelong Group, a producer of automotive elements, medical units, and a participant within the e-commerce area, heralds a brand new section for GoMechanic enterprise, it added.
The Servizzy consortium, to be led by the Lifelong Group, emerged because the strongest bid on this course of for the acquisition of the GoMechanic Business in accordance with the phrases and situations contained within the settlement, it famous.
Financial particulars concerning the deal weren’t shared.
In January this 12 months, GoMechanic co-founder Amit Bhasin admitted to errors in monetary reporting, following which a forensic audit has been ordered and a enterprise restructuring undertaken which can see 70 p.c of the 1,000-odd workforce being laid off.
Nearly two years after it raised a mammoth $42 million (roughly Rs. 345 crore) in funding, it emerged that GoMechanic cooked its monetary books by inflating revenues.
GoMechanic navigated the latest challenges by persevering with operations throughout 800 workshops and servicing 30,000 automobiles in January.
“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 revolutionizing the Indian automotive service and repair industry,” a Lifelong Group official spokesperson stated.
Lifelong Group diversified into auto element manufacturing in 1995, medical units in 2005 and e-commerce in 2015.
The enterprise has grown from an annual income of $0.5 million (roughly Rs. 4 crore) in 1995 to over $175 million (roughly Rs. 1,440 crore) at the moment and caters to main prospects within the automotive business like Hero Moto, General Motors, Arvin Meritor, Stanley Black & Decker, and so on.
