GoMechanic’s Layoffs: What Went Wrong with the Funding?


GoMechanic, a Bengaluru-based automobile servicing start-up, has recently come under the scanner for laying off 70% of its employees. This has come as a shock to many as GoMechanic had raised a whopping $54 million in its series C funding from investors like Sequoia. Let us dive deeper into the company’s history, funding, and the reasons behind the layoffs.

Company History

GoMechanic was founded in 2016 by Amit Bhasin, Kushal Karwa, Nitin Rana, and Rishabh Karwa, with the aim of providing affordable and high-quality car repair and maintenance services. The start-up soon gained popularity among car owners due to its transparent billing system, well-trained mechanics, and use of state-of-the-art technology.


The company has managed to raise a total of $82.5 million in funding from investors like Sequoia, Chiratae Ventures, Orios Venture Partners, and others. Its latest round of funding, Series C, raised $54 million, led by Sequoia and saw the participation of other existing investors.


GoMechanic has been performing impressively since its inception. Its revenues grew by over 250% between 2019 and 2020 and, as of 2021, the company has 500+ garages across India. The co-founders have been vocal about their plans to expand further and make GoMechanic the go-to destination for car maintenance and repairs in India.

Reasons Behind the Layoffs

The company has stated that the layoffs were a result of restructuring efforts to improve efficiency and streamline operations. However, it is unclear how this restructuring would align with the company’s ambitious expansion plans.

Number of Employees Laid Off

GoMechanic has laid off a staggering 70% of its workforce, which accounts for at least 1,500 employees. This is a significant hit to the company’s human resources, and it remains to be seen how the company will recover from this loss.

Statements from Company Stakeholders

The news of the layoffs has come as a major shock to the industry, and many have been quick to criticize the move. Sequoia, one of the lead investors in GoMechanic, has responded to the news by launching a forensic audit to investigate the reasons behind the layoffs. GoMechanic’s co-founders have remained tight-lipped about the situation, and it is unclear if they will provide a statement about this matter.


The decision to lay off so many employees comes as a surprise considering GoMechanic’s impressive financial performance and ambitious expansion plans. The layoffs could have a long-term impact on the company’s reputation and ability to retain top talent. It is important that the company takes measures to address concerns raised by stakeholders and rebuild trust in the market.

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