Troubled Indian car service and repair startup GoMechanic has been acquired by a consortium led by Lifelong Group, the auto parts firm said.
It did not give any financial details of the transaction.
The development comes barely two months after the startup’s co-founder Amit Bhasin admitted to errors in the company’s financial reporting. The company also said it will lay off 70% of its workforce and conduct a third-party audit of its business.
“This transaction will assist in preserving the ecosystem at large and also enable providing continued livelihood to the employees at GoMechanic,” Lifelong Group said in a statement.
The sale was led by GoMechanic’s investor Stride Ventures, the group said.
GoMechanic did not immediately respond to Reuters’ request for financial details of the deal. Lifelong Group could not be immediately reached for a comment.
Founded in 2016, the Sequoia India-backed startup has serviced and repaired more than two million cars in the country through its service centers, and says its services cost 40% less than the offerings of automakers.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Dhanya Ann Thoppil)