Innovative Thinkers: The Pioneers Behind GoMechanic’s Disruption in Car Services

A quartet of visionary entrepreneurs, Amit Bhasin, Rishabh Karwa, Nitin Rana, and Kushal Karwa, embarked on a mission to decode ‘why’ and redefine ‘why not.’ Their journey began with a simple question: Why not change the status quo? What transpired was a remarkable transformation in the car service and repair segment, resulting in the birth of GoMechanic.

The story unfolds in 2012 when Kushal Karwa, a mechanical engineering graduate from the University of Mumbai and a fresh alumnus from IIM Ahmedabad, joined the global strategic consulting firm Arthur D Little as a business analyst in Gurugram. From the beginning, he brought his signature ‘why not’ attitude to problem-solving, earning him recognition as the youngest consultant in the company. While the world acknowledged his meteoric rise, Karwa’s focus remained steadfast on ‘why not.’

In his personal life, Karwa’s car had a recurring issue, breaking down every month. Rather than questioning the exorbitant repair costs, he continued to pay, convinced that it was the fastest solution. This pragmatic approach was shared by his IIM Ahmedabad batchmate, Amit Bhasin, who also found himself in a similar predicament. The two friends were stuck in a cycle of ‘why not pay and maintain the status quo?’

However, in March 2016, a moment of clarity dawned on Karwa. The numbers didn’t add up – the money spent on repairs exceeded the cost of purchasing a used car. This revelation prompted them to delve deeper into the car service and repair industry. What they uncovered was a sector ripe for disruption. No branded players, inefficient neighborhood workshops, and questionable spare parts quality presented a colossal opportunity. The question before them was, “Can they do it?” Their unequivocal response was, “Why not.”

With this determination, Karwa and Bhasin joined forces with Rishabh Karwa and Nitin Rana to establish GoMechanic. The co-founders implemented an asset-light model that involved transforming neighborhood garages into GoMechanic-branded workshops. These garages received standardized operating procedures, technological support, and access to original spare parts directly sourced from manufacturers. Exclusive contracts and revenue-sharing agreements ensured control over workshops, resulting in consistent pricing and service quality across all centers.

This approach paid off immensely. In Q2 2016, GoMechanic began its journey with five garages and a presence in Delhi NCR, generating revenue of Rs 1.87 crore. The subsequent year saw remarkable growth, with numbers reaching Rs 4.64 crore, 19 garages, and expanding to three cities. The trajectory only went upwards. By FY21, GoMechanic reported revenues of Rs 68.35 crore, operated in 37 cities, serviced 1,13,288 cars in Q2 of that year, and expanded its network to 617 garages.

One of the driving forces behind GoMechanic’s exponential growth was the support from marquee venture investors. Over five years, the brand secured Rs 439 crore in funding from prominent names such as Tiger Global, Sequoia Capital India, Orios Venture Partners, and Chiratae Ventures.

Sequoia India’s principal, Abhishek Mohan, expressed satisfaction with the performance of GoMechanic, emphasizing its role in providing an affordable and high-quality servicing and repair alternative for car owners in India. With its full-stack approach, GoMechanic emerged as the largest player aggregating unorganized workshops, delivering a seamless customer experience.

Industry analysts likened GoMechanic’s asset-light model to Oyo’s disruptive approach. The unorganized car service and repair industry in India presented numerous opportunities, and GoMechanic effectively addressed the core issue of spare parts quality and cost. This business model, according to Srikrishna Ramamoorthy, partner at Unitus Ventures, leveraged the existing infrastructure of neighborhood garages, significantly reducing the need for extensive capital investments. Instead, the focus shifted towards introducing technology, standardizing operations, and building strong relationships with garage owners.

The founders faced a significant challenge in winning the trust of neighborhood garage owners who had previously experienced setbacks with different business models. GoMechanic adopted a unique strategy: they avoided franchisee fees and hidden service costs. Instead, they presented a revenue-sharing arrangement, offering garage owners a partnership where they could assess the impact and commence revenue sharing once they brought in more customers. This approach worked wonders, bridging the trust gap and fostering collaboration.

As GoMechanic looks ahead, its next challenge is to expand across India and beyond. Kushal Karwa expressed their plans to launch in Southeast Asia while recognizing the massive growth potential in the domestic market. India boasts over 2.5 lakh small workshops, a vast landscape yet to be explored by GoMechanic. Karwa confidently states, “Why not,” while clarifying that they’ve also figured out the ‘why’ that precedes ‘why not.’

GoMechanic’s journey is a testament to the transformative power of questioning the status quo, and it reflects the vision and determination of its founders in reshaping the car service and repair industry.