Two months after GoMechanic received notice to initiate insolvency proceedings and admitted to financial irregularities, the car repair startup was acquired by Servizzy, a consortium led by the Lifelong Group.
The Lifelong Group in a statement said, "Due to the recent financial difficulties at GoMechanic, the board and shareholders with support from Stride Ventures initiated a speedy and widely publicized sale process to ensure the continuity of business."
The Delhi-based company also added that, The Servizzy consortium will be led by the Lifelong Group and was the strongest bidder in the process for the acquisition of the GoMechanic Business based on the terms and conditions contained in the agreement.
Lifelong Group that was established in 1985 is an Indian manufacturer of automotive components and medical devices.
GoMechanic fraud
In January Bhasin had confessed to his mistakes in a LinkedIn post at that time Moneycontrol reported that the company had over-inflated numbers and reported fictitious garages. The report also added that GoMechanic's favored garages were found to be making disproportionately more money.
The details came out prior to its Series D funding deal of about $75-80 million. This funding deal was supposed to be led by SoftBank's Vision Fund and Malaysian sovereign fund Khazanah Nasional.
Since the company's wrong-doings came into light it was looking for a potential buyer. The company had reached out to many like the car-selling marketplaces Cars24 and Spinny.
