GoMechanic, a car servicing startup acquired by Lifelong group led consortium in slump sale
By Team Startupcity | Wednesday, 29 March 2023, 12:17 IST
A consortium formed by auto component manufacturer Longevity Group has bought troubled automotive startup GoMechanic, the organisation announced in a news release. Stride Ventures, a venture loan investor in GoMechanic, took the lead in the deal. The statement read, "This sale will enable giving continuing livelihood to the staff of Gomechanic and contribute in conserving the ecology at large."
Investors in GoMechanic began looking for a sale after the firm failed after its founders acknowledged to financial theft. 70% of the employees at GoMechanic were laid off earlier this year. Following revelations of a series of errors and financial mismanagement by the founder, SoftBank and Malaysia's sovereign wealth fund Khazanah had withdrawn from a funding agreement in the company.
"To assure the continuation of company, the board and shareholders of GoMechanic, with assistance from Stride Ventures, launched a quick and extensively publicised sale process. In this process for the acquisition of the GoMechanic Business in accordance with the terms and conditions stated in the agreement, the Servizzy consortium, to be led by the Lifelong Group, emerged as the best bidder, according to a statement from Lifelong Group announcing the sale.
Longevity Group has been producing components since 1985. It serves customers from the automobile industry in addition to specialising in the production of plastics and polymers.
Read More News :
Google and MeitY Startup Hub to assist 100 Indian startups
Wipro Consumer Care Invests In Women's Health Startup Gynoveda