Car service and repair platform GoMechanic expects to triple its total revenue to Rs 700 crore by 2027 and then go for a public listing, a top company official said.
GoMechanic co-founder and CEO Himanshu Arora told PTI that the company currently has around 3% market share and aims to increase it to 10% in the next three years.
The company is also looking to bring in different offerings in the areas of two-wheelers and electric vehicle services.
“We currently sit at around 3% of the market share and by 2027 servicing 1 in ten cars will be around 10%. By 2027, we expect our brand to generate revenue of around Rs 700 crore. We believe. For IPO GoMechanic’s growth story A natural next step,” Arora said.
The company is currently providing services through 800 garages in 125 cities and plans to reach 2500 garages in 500 cities by 2027.
GoMechanic was acquired by Servizzi, a subsidiary of Lifelong Group, in March 2023 after discrepancies in its financial records were discovered under previous management and the firm was put up for sale by investors.
“It’s only been 20 months since we acquired the brand… The projection clearly indicates that an IPO is on our roadmap,” Arora said.
GoMechanic posted revenue of Rs 210 crore in FY 2023-24 and Rs 85 crore in the April-June 2024 quarter.
“Our spares and accessories are also growing rapidly. We should clock around Rs 432 crore in gross business value and around Rs 200 crore in total revenue this fiscal,” Arora said.
“When we acquired the brand, the customer retention rate was 33% and currently it is 53%. We are working on a franchise model where we tie up with garages and deploy our own staff for quality control. Our target is to reach 65. By 2026 66% retention rate,” said GoMechanic Co-Founder and Chief Operating Officer Muskan Kakkar.
She said that Gomechanik has 8 lakh monthly active users, which is now gradually approaching 1 million.
“We are EBIDTA (Operational Profit) positive. For me, maintaining PAT (Profit After Tax) positivity in our core operations is essential for our financial stability. At the same time, our growth requires strategic investment in areas like two-wheelers. Although these While investments may affect our PAT in the short term, they are critical to long-term success.
We will definitely be PAT-positive by 2027,” Kakkar said.
She said that Gomechanik currently has about 550 people on its payroll and about 4,000 people are working in this entire franchise network.
“Currently, we are in the process of appointing the head of our two-wheeler business. We are looking for someone who has experience in building a business from the ground up, not just limited to the automobile sector. Our goal is to bring in people who will grow with us and make a significant contribution to our expansion, ensuring success. Businesses have started,” Kakkar said.