Car servicing startup GoMechanic, which has been searching for buyers over the past few weeks after admitting financial misreporting, has reportedly found CarTrade as its buyer. According to a MorningContext report, Autotech firm CarTrade is acquiring GoMechanic.
The report added that the auto tech firm has valued GoMechanic at $30 million, a decline of $253 million that the company had reported as part of its funding round in June 2021.
The potential acquisition would help CarTrade to strengthen its after-sales service offering and offer warranty on parts, the report said.
In January of this year, vendors of the Gurugram-based startup GoMechanic reported non-payment of dues, which exposed the fraudulent activities within the company. During its due diligence process, SoftBank’s Vision Fund, which was considering investing in GoMechanic, discovered irregularities in the startup’s reported numbers. As a result, SoftBank alerted GoMechanic’s current investors about the inconsistencies.
Soon after this, GoMechanic let go of nearly 70% of its workforce and was taken to court for bankruptcy by one of the vendors.
Source @Indianstartupnews
