He said the leadership has decided to “restructure the business while we look for capital solutions”.
The Gurgaon-headquartered startup was founded in 2016 as a vehicle to bridge the gap between authorised service centres and local workshops. Of late, the company was struggling to raise funds despite discussions with several investors. Early last year, the startup was reportedly in talks to raise a round of funding led by Tiger Global at over $1 billion valuation.
However, Bhasin said, the intrinsic challenges of the sector “took the better of us and we made grave errors in judgment as we followed growth at all costs, particularly in regard to financial reporting, which we deeply regret”.
“We take full responsibility for this current situation and unanimously have decided to restructure the business while we look for capital solutions. This restructuring is going to be painful and we will unfortunately need to let go of approx. 70 per cent of the workforce. In addition, a third party firm will be conducting an audit of the business,” he added.
Bhasin further said the GoMechanic leadership “got carried away” in trying to explore every opportunity to grow.
Seeking the support of “our well-wishers”, he added that GoMechanic is working on a plan which would be most viable under the circumstances.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app