GoMechanic, a car servicing startup based in Gurugram, has been acquired by Servizzy, a consortium led by the Lifelong Group. The group is an Indian conglomerate specialising in auto component manufacturing, medical devices, and e-commerce.

The acquisition comes after GoMechanic faced financial difficulties, and the board and stakeholders, with the support of Stride Ventures, initiated the sale process to ensure the continuity of GoMechanic’s business. The financial details of the acquisition were not disclosed. Still, it is expected to provide some respite to the venture firms that had invested in GoMechanic, with over Rs 100 crore invested in the startup.

According to an official spokesperson from Lifelong Group, the acquisition aligns with the conglomerate’s strategic vision of synergising its proven expertise in the automotive industry. The group diversified into auto component manufacturing in 1995, medical devices in 2005, and e-commerce in 2015. The business has grown from an annual revenue of $0.5 million in 1995 to over $175 million today, catering to major customers in the automotive industry, including Hero Moto Corp, General Motors, ArvinMeritor, and Stanley Black & Decker.

The Servizzy consortium, led by the Lifelong Group, emerged as the strongest bidder in the acquisition process. This deal will offer a new lease of life to the platform and enable the continued livelihood of its employees. The acquisition will assist in preserving the ecosystem at large, ultimately contributing to the growth and development of the Indian automotive service and repair industry.

The company continued to operate across 800 workshops and service 30,000 vehicles in January, demonstrating the strength of its business model. GoMechanic’s technology-focused approach, competitive pricing and strong brand recognition have helped it to remain a market leader in India’s underdeveloped automotive service and repair industry.

Although it remains unclear whether investors will act against GoMechanic’s founders, the acquisition offers the platform and its employees a new lease on life. This is the second startup backed by Sequoia that is being acquired after a fraud case.