Investors demanded sustainability over rapid growth: GoMechanic’s Kakkar
Founded in 2016, GoMechanic was on the verge of breakdown about a year-and-a-half ago. | Photo: Justdial
Car services and repair platform GoMechanic’s investors sought customer-focused, sustainable growth over rapid growth that helped the troubled startup get back on its feet, Co-Founder Muskan Kakkar said on Wednesday.
She was speaking about the brand’s revival journey during a panel discussion at the 51st edition of the AIMA National Management Convention here.
Founded in 2016, GoMechanic was on the verge of breakdown about a year-and-a-half ago after anomalies were found in its financial records.
In March 2023, it was acquired by Servizzy, a subsidiary of the Lifelong Group.
A customer-focused approach helped the “sinking ship” bounce back, Kakkar said.
“Thanks to our investors — Lifelong, Hero and Stride Ventures — who trusted us by saying that they do not need exponential growth in the business, but a business which is more sustainable, a business which can stay there forever,” she said.
That’s how the company has not been going for exponential growth, but is working to make the business smart, sustainable, and customer-centric, she said.
To this effect, the new leadership took an approach that prioritised customer-retention over increasing the customer base. The needs and expectations of people seeking aftermarket care for their vehicles were identified and targeted as part of the revival strategy, she said.
Within 16 months of adopting the strategy, the company was able to retain more than twice the number of customers, attaining a customer retention rate of 51 per cent, Kakkar added.
Gurgaon-based GoMechanic claimed operational profitability and reported a revenue of Rs 85 crore in the first quarter of FY25.
For the full FY24, it posted a revenue of Rs 210 crore.
The company earlier this year announced plans to expand its presence 20 times from 50 cities to 1,000 cities by 2027.
“We have managed to strike a balance between profitability and growth, ensuring that we continue to provide exceptional service to our customers while expanding our footprint. Our aim is to service 1 out of 10 cars in the country by FY27, and by then, we plan to be present in over 1,000 cities across India,” GoMechanic Co-Founder and CEO Himanshu Arora had said.
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First Published: Sep 11 2024 | 9:52 PM IST