Nearly two years after it raised a mammoth USD 42 million in funding, it emerged that GoMechanic cooked its financial books by inflating revenues
Automobile after-sales service startup GoMechanic on Friday announced a turnaround in its core business in January. The company, which admitted to errors in financial reporting last month, said it serviced 30,000 vehicles last month, which is 70 per cent of the peak sales it achieved in July 2022.
GoMechanic continues to see strong auto servicing volumes in most of its markets, with Delhi-NCR contributing the most, it said in a statement.Other top geographies are also showing good traction, sustaining the business on a month-on-month basis in terms of car servicing volumes, it added.
It claimed that over 800 workshops remained active in the network. "The entire founding team remains focused on not just surmounting the formidable challenge before us but in ensuring a sustainable solution and not just a temporary quick fix," a GoMechanic spokesperson said.
Besides recalibration on the business strategy front, the company took some painful but unavoidable decisions last month, the spokesperson said. Last month, GoMechanic co-Founder Amit Bhasin had admitted to errors in financial reporting, following which a forensic audit has been ordered and a business restructuring undertaken, which will see 70 per cent of the 1,000-odd workforce being laid off.
Nearly two years after it raised a mammoth USD 42 million in funding, it emerged that GoMechanic cooked its financial books by inflating revenues.