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SoftBank plans to invest $35 M in India’s GoMechanic

One of the Japanese investor’s smaller bets in India by its Vision Fund, which generally signs bigger checks, is in discussions to invest $35 million in Indian vehicle servicing and repair firm GoMechanic, according to two individuals who spoke to Reuters.

According to statistics from Venture Intelligence, SoftBank has long been a big investor in Indian businesses, having made close to $4 billion in one year alone. The online education company Unacademy and the digital payments company Paytm are among its high-profile investments.

However, according to officials in the investment sector, SoftBank has begun to approach its investments with more caution following a worldwide tech downturn. Following a record $26.2 billion quarterly loss at its Vision Fund due to declining tech valuations, SoftBank’s CEO Masayoshi Son stated last month that the company will invest significantly less this year than in 2021.

Early-stage discussions between Vision Fund and GoMechanic are being held at a valuation of $600-700 million, according to two sources with knowledge of the situation who asked to remain anonymous because the discussions are private. Malaysian sovereign fund Khazanah and current investor Tiger Global also intend to invest in the $100 million funding round.

Since its establishment in 2016, GoMechanic has maintained and repaired more than two million automobiles in India through its service facilities. It claims that its services are 40% less expensive than those provided by the OEMs themselves.




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