The world’s leading investor, SoftBank Group is planning to invest $35 million in the Indian car service and repair start-up GoMechanic through the company’s Vision Fund in India. Billionaire Masayoshi Son-led SoftBank, which is one of the leading start-up investors in India, has invested $4 billion in the country, according to a report by Venture Intelligence.
According to the report by Reuters, this would be the Japanese investors’ smallest investment in the company through its Vision Fund at a valuation of $600 to $700 million. The Japanese Conglomerate had been in discussions with GoMechanics for more than nine months.
The development comes at a time when global investor has been resorting to cost-cutting measures after the company incurred a loss of $23 billion last year, which is the highest in the company’s corporate history. Owing to this, Son had hinted at resorting to cost-cutting measures. Last month, SoftBank laid off 20 per cent of its Vision Fund workforce. Son has also advised the company executives to take a measured approach and to invest smaller funds in early-age investments, as per the Reuters report. Some of SoftBank's investment in India include Paytm and Unacademy.
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Other investors such as Tiger Global and Malaysian sovereign fund Khazanah are also planning to invest $100 million. Founded in 2016, GoMechanics has so far provided car repair services to over two million customers.
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