GoMechanic’s working capital crisis
The car repair startup has not paid workshops and laid off around 30% employees as it waits for its next fundraise.
Why read this story?
Editor's note: GoMechanic is struggling. Unpaid dues to partner workshops, layoffs and a desperate wait for the next fundraise outline the many troubles of the car servicing and repairs startup. The Gurugram-based company has not been able to make payments to its workshops in the last few months. At least five GoMechanic workshops we visited say their money is stuck with the company. Two workshops have even pulled out of the partnership owing to payments issues. The owners of two other workshops add that they have been told by the company that payments will be settled once the funds come in. GoMechanic has been waiting on these funds for a while now. According to a Reuters report, GoMechanic is in talks with SoftBank to raise $35 million from its Vision Fund. It last raised about $42 million, a little over Rs 300 crore at the time, in June 2021. SoftBank and GoMechanic have been discussing the fundraise for over a year now, according to the news report, which adds that the former has been uncomfortable with the firm’s valuation request of $1 …
More in Internet
You may also like
Eternal’s leap of faith: exit Goyal, enter Dhindsa
Deepinder Goyal’s handing of Eternal’s reins to Albinder Dhindsa raises uncomfortable questions about timing, risk and whether shareholders are being asked to trust yet another reassuring narrative.
BellaVita’s success has opened the floodgates to cheap fragrance brands
In less than five years, BellaVita has become one of the biggest fragrance brands in India. This has given several others confidence to follow the same playbook and sell cheap perfumes disguised as luxury.
Eternal, Swiggy, Zepto are all unskilled worker arbitrage businesses
Exploitation of unskilled workers is at the heart of quick-delivery service businesses in India. They should be valued for what they are and not what they pretend to be, a trait that has taken a devious form of wanting it both ways.