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    Tuesday, April 23, 2024

      Auto Components Maker Lifelong Group Acquires After-Sales Service Startup GoMechanic | Details Inside

      Lifelong Group, a Auto components maker said it has acquire stress automobile after-sales service startup GoMechanic for an undisclose amount. The GoMechanic business has acquire by the Lifelong Group as the majority shareholder under Servizzy consortium, the Delhi-based firm said in a statement.

      The Lifelong Group is an Indian company establish in 1985 and has looking to expand its operations in the automotive service and repair industry.

      This acquisition and new ownership structure with Lifelong Group, a manufacturer of automotive components, medical devices, and a player in the e-commerce space, heralds a new phase for GoMechanic business, as pet statement.

      The Servizzy consortium, to be led by the Lifelong Group, emerge as the strongest bid in this process for the acquisition of the GoMechanic Business in accordance with the terms and conditions contain in the agreement, as per statement.

      Financial details regarding the deal were not share.

      In January 2023, GoMechanic co-founder Amit Bhasin admit to errors in financial reporting, following which a forensic audit has order and a business restructuring undertaken which will see 70% of the 1,000-odd workforce being laid off.

      Nearly two years after it raise a mammoth $42 million (approx. Rs. 345 crore) in funding, it emerge that GoMechanic cook its financial books by inflating revenues.

      GoMechanic navigate the recent challenges by continuing operations across 800 workshops and servicing 30,000 vehicles in January.

      Lifelong Group official spokesperson said :

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      “Acquisition of the GoMechanic business, aligns with our strategic vision of synergising the Lifelong Group’s proven expertise in the automotive industry. We are focused on building upon GoMechanic’s business journey, and will continue revolutionizing the Indian automotive service and repair industry,”.

      Lifelong Group diversified into auto component manufacturing in 1995, medical devices in 2005 and e-commerce in 2015.

      The business has grown from an annual revenue of $0.5 million (approx. Rs. 4 crore) in 1995 to over $175 million (approx. Rs. 1,440 crore) today and caters to major customers in the automotive industry like Hero Moto, General Motors, Arvin Meritor, Stanley Black & Decker and other.

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