Sequoia and Tiger Global-backed car servicing start-up GoMechanic has been acquired by a consortium, led by Lifelong Group as the majority shareholder under its Servizzy entity in a slump sale. This comes two months after GoMechanic founders admitted to financial irregularities and investors began an insolvency process.
The financial details of the acquisition are still fuzzy. But sources in the know said this deal will provide some respite to debt venture firm Stride Ventures which has over ₹100 crore invested in the start-up.
The company was valued at $285 million at the time of its Series C fundraise in June 2021, which dramatically eroded down to just about $30 million in March 2023 after its founder admitted to financial misappropriation.
According to sources, there is no clarity on what happens to the founders.
"One thing is clear: the founders will not make any economic gain from the sale," said a source in the know.
This story is from the March 30, 2023 edition of Business Standard.
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This story is from the March 30, 2023 edition of Business Standard.
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