Khazanah In Talks To Lead $100 Million Round At GoMechanic, Sources Say
India's Finance Ministry will recommend bold tax reform to ensure that Narendra Modi's growth-crimping cash ban wasn't in vain
(Bloomberg) -- Khazanah Nasional Bhd. is in talks to lead a $100 million investment round into GoMechanic at more than double the valuation at which the startup raised funds last year, people familiar with the matter said.
The Indian auto-services firm is seeking a valuation of about $700 million in this round from investors, including Malaysia’s sovereign wealth fund, the people said, asking not to be identified as the information is not public. The company, backed by Sequoia India, raised $42 million from investors including Tiger Global Management last June at a valuation of around $300 million.
The technology-enabled car service center operator will be joining startups from India like fintech Jar whose valuations have surged this year, even as public tech stocks plunged and large investors like SoftBank Group Corp. are pledging to make fewer investments in general. GoMechanic is seeking the funds to expand its network of outlets in India and abroad, they said.
Talks could still be delayed or fall apart, the people said. Representatives for Khazanah and GoMechanic didn’t respond to emails seeking comment.
The Gurugram-based company was founded in 2016 by four friends including Kushal Karwa and Amit Bhasin. With more than 500 servicing outlets across India, it has the largest network in the sector in the country, according to the company’s website.
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