Lifelong Group Acquires Troubled Startup GoMechanic, Know How The Deal Happened
Lifelong Group acquires troubled startup GoMechanic, know how the deal happened.
Auto parts maker Lifelong Group on Wednesday acquired GoMechanic, a start-up that provides after-sales service to troubled vehicles.
At what cost has this acquisition been made? Its information has not come to the fore yet.
The statement issued by the company said that the majority stake in the business of GoMechanic has been acquired by the Servizzy consortium of Lifelong Group.
The statement further said that Lifelong Group is an Indian company, which was established in 1985.
The company plans to enter the after-sales service market through this acquisition. Currently, the company is into auto parts, medical equipment, and e-commerce space.
Lifelong Group made the highest bid.
Lifelong Group’s Servizzy consortium won the highest bid in the ongoing auction process for the business sale of GoMechanic.
However, how much has the company made this acquisition? It has not been disclosed.
Financial irregularities came to the fore in GoMechanic.
Let me tell you, in January this year, Amit Bhasin, co-founder of GoMechanic, revealed that financial irregularities had come to the fore in the company.
For this reason, he decided to conduct a forensic audit of the company.
In this episode, the company fired 1000 employees, which was 70 percent of the total workforce of the company. By January, the company had 800 workshops across the country.
Lifelong Group started the business of auto parts manufacturing in 1995, medical devices in 2005, and e-commerce in 2015.
The Group’s business has grown from an annual revenue of US$ 0.5 million in 1995 to over US$ 175 million today.
Major clients of the company include Hero MotoCorp, General Motors, and Stanley Black & Decker among others.
These cars may be discontinued from April 1, the decision will be taken due to new BS6 Phase-2 rules.
Under the new BS6 Phase-2 rules, due to RDE Norms, the country’s automobile companies are going to discontinue many of their car models.
This may include the names of car companies like Honda, Hyundai, Mahindra, Tata, and Skoda. This list may include the name of the car model you are planning to buy.
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