Lifelong Group’s acquisition of GoMechanic is significant as it brings in a fresh approach to managing the business. The firm has experience in developing automated systems and is likely to be helpful in digitising the company’s operations.
The Lifelong Group had been in talks to acquire GoMechanic for months before the investors scrambled for a sale earlier this year. With more than 10 years of experience servicing major automotive brands, the Lifelong Group believes that they can provide even better customer service and improve efficiency across the company.
This acquisition will help GoMechanic maintain its sustainability and also keep their employees employed. By being a part of the Lifelong Group, GoMechanic will benefit from their know-how in the automotive field.
GoMechanic has put the Indian startup community on blast after it became apparent that the company’s founders had misrepresented facts, inflated revenue figures, and kept investors in the dark. The acquisition by Merricks Capital is a damning indictment of how these startups operate and begs the question – why do they keep attempting to raise funds under false pretenses?
Since its inception in 1978, GoMechanic has been a leading provider of automotive services. The company operates 800 workshops and serviced 30,000 vehicles in January. With a reputation for excellence, GoMechanic is committed to providing exemplary customer service.
According to the probe, which was ordered by the existing backers of GoMechanic, many of its garages were fictitious and did not actually hold cars. As a result, the company was not able to achieve profitability and ultimately was rejected for investment by high-profile backers. Despite this setback, GoMechanic is still in operation and continues to offer auto services to customers across Malaysia.
The GoMechanic layoffs are a drastic response to the startup’s uncertain future. The company is looking for ways to reduce expenses and increase its valuation, but has had little success so far. With no new funding in sight, GoMechanic was forced to lay off 70% of its workforce in an effort to save the company.
