New Delhi: Car repair startup GoMechanic has been acquired by Servizzy, a consortium led by the Lifelong Group, following financial troubles caused by reporting errors. This comes two months after founder Amit Bhasin admitted the mistakes and announced that the cash-strapped company will lay off roughly 70% of its workforce while also having its accounts audited by a third party.
“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 Lifelong Group said in a statement.
“The Servizzy consortium, to be led by the Lifelong Group, emerged as the strongest bid in this process for the acquisition of the GoMechanic Business in accordance with the terms and conditions contained in the agreement,” the company added.
Lifelong Group is an Indian manufacturer of automotive components, medical devices and a player in the e-commerce space, and was established in 1985.
