Founded in 2016, GoMechanic was on the verge of bankruptcy about a year and a half ago. | Photo: Justdial
Investors in car repair and service platform GoMechanic sought sustainable customer-focused growth rather than rapid growth that helped the troubled startup turn around, co-founder Muskan Kakkar said Wednesday.
She spoke about the brand’s recovery journey during a panel discussion at the 51st edition of AIMA National Management Convention here.
Founded in 2016, GoMechanic was on the brink of collapse 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-centric approach helped turn the “sinking ship” around, Kakkar said.
“Thanks to our investors – Lifelong, Hero and Stride Ventures – who trusted us by telling us that they don’t need exponential business growth, but rather a business that is more sustainable, a business that can stay there forever,” he said.
That’s why the company isn’t looking for exponential growth, but is working to make the business smart, sustainable and customer-centric, he said.
To do so, the new management adopted an approach that prioritised customer retention over growing the customer base. As part of the revival strategy, the needs and expectations of people seeking after-sales services for their vehicles were identified and addressed, he said.
Within 16 months of adopting the strategy, the company managed to retain more than double its customers, achieving a customer retention rate of 51 percent, Kakkar added.
Gurgaon-based GoMechanic said it has turned operationally profitable and reported revenues of Rs 85 crore in the first quarter of FY25.
For the entire fiscal year 24, it recorded a revenue of Rs 210 crore.
The company announced earlier this year plans to expand its presence 20-fold, from 50 cities to 1,000 cities by 2027.
“We have struck a balance between profitability and growth, ensuring that we continue to provide exceptional service to our customers while expanding our footprint. We aim to service 1 in 10 cars in the country by FY27 and by then, we plan to be present in over 1,000 cities across India,” said GoMechanic Co-Founder and CEO Himanshu Arora.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 11, 2024 | 21:52 IS
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