The sale was led by GoMechanic’s venture debt investor Stride Ventures. “This transaction will assist in preserving the ecosystem at large and also enable providing continued livelihood to the employees at Gomechanic,” the statement said.
GoMechanic investors started looking for a buyer after the startup went belly up after its founders admitted to financial misappropriation.
GoMechanic laid-off 70% of its workforce earlier this year.
SoftBank and Malaysia’s sovereign wealth fund Khazanah had pulled out of a funding deal in the company after a series of lapses and financial mismanagement from the founder emerged, ET reported.
“Due to the recent financial difficulties at GoMechanic, the board and shareholders with support from Stride Ventures initiated a speedy and widely publicized sale process to ensure the continuity of business. The Servizzy consortium, to be led by the Lifelong Group, emerged as the strongest bid in this process for the acquisition of the GoMechanic Business in accordance with the terms and conditions contained in the agreement,” a statement from Lifelong Group, announcing the sale, said.
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Lifelong Group, a component manufacturer, has been around since 1985, according to the statement by the company. It specialises in plastics and polymer manufacturing and also serves clients from the automotive industry.