Highlights
GoMechanic’s Ambitious Revenue Growth Plans
GoMechanic, a prominent car services and repair platform, anticipates a remarkable over triple increase in its net revenue, projecting Rs 700 crore by 2027. The company’s top executives have indicated that they are preparing for a public listing following this growth. Co-Founder and CEO, Himanshu Arora, shared insights with PTI about the company’s current performance and future objectives.
Presently holding around 3% of the market share, GoMechanic aims to elevate this figure to 10% within the next three years. To achieve this, the company is planning to broaden its service offerings by entering the two-wheeler and electric vehicle service segments.
“We currently possess about 3% of the market share. Our goal is to service one out of every ten cars, reaching around 10% by 2027. We forecast generating approximately Rs 700 crore in revenue by then. An IPO will be the next logical step for the growth of GoMechanic,” stated Arora.
Expansion of Garage Network
GoMechanic is currently operational through 800 garages in 125 cities and has an ambitious plan to scale this number to 2,500 garages across 500 cities by 2027.
Recent Acquisition and Growth Trajectory
The company was acquired by Servizzy, a subsidiary of the Lifelong Group, in March 2023 after identifying discrepancies in its financial records under previous management, which led to its sale by investors. Arora remarked, “It has been only about 20 months since we took over the brand, and our growth trajectory clearly suggests that an IPO is on our horizon.”
Revenue Milestones and Performance
In the financial year 2023-24, GoMechanic reported a revenue of Rs 210 crore, with Rs 85 crore generated in the April-June 2024 quarter. Arora noted the fast growth in spares and accessories, predicting a gross merchandise value of approximately Rs 432 crore for this financial year and net revenue of around Rs 200 crore.
Customer Retention and Operational Model
Upon acquisition, the customer retention rate was at 33%, which has since increased to 53%. Muskaan Kakkar, Co-Founder and Chief Operating Officer, explained, “We utilise a franchise model, connecting with garages and deploying our personnel to ensure quality control. Our aim is to achieve a retention rate of 65-66% by 2026.”
Currently, GoMechanic maintains a monthly active user base of 8 lakh, which is steadily approaching 10 lakh.
Financial Stability and Hiring Plans
“We are EBITDA positive (operating profit). For financial stability, maintaining profit after tax (PAT) positivity in our primary operations is crucial. While strategic investments in areas such as two-wheelers may impact our short-term PAT, they are essential for sustained long-term success. We project being PAT positive by 2027,” Kakkar added.
GoMechanic currently has a workforce of around 550 employees, alongside a franchise network comprising approximately 4,000 individuals actively engaged in operations.
Kakkar further indicated, “As we expand our two-wheeler segment, we are actively seeking a leader with experience in building businesses from the ground up, not necessarily limited to the automotive field. We aim to hire individuals who excel in launching and scaling businesses to foster substantial growth together.”