Investors eyeing asset sale of GoMechanic; decision likely in a week

The firm reportedly did not maintain inventory records for receipts and issuance of goods directly received by the customers

Peerzada Abrar Bengaluru

GoMechanic’s investors in a joint statement recently said they were deeply distressed by the fact that the founders knowingly misstated facts

The investors of GoMechanic could push for asset sales at the country’s largest aftermarket automotive service and maintenance platform, according to the people familiar with the matter. The decision is expected to be finalised in a week’s time, the sources said.
This comes after investors flagged accounting irregularities at the Gurugram-based company, which has now decided to lay off 70 per cent of its workforce as it struggles to raise fresh funds.
“We are looking at multiple options that are in the interests of all the stakeholders. The said option (asset sale) is one on the table,” said the GoMechanic founding team in response to a query. “But as you would appreciate, it would be premature to state anything definitive at this stage.”

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First Published: Feb 24 2023 | 8:29 PM IST

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