SoftBank Vision Fund to invest $35Mn in GoMechanic

SoftBank Group is in talks to invest $35 million in Indian car service and repair firm GoMechanic.

Vision Fund’s early-stage talks with GoMechanic are being held around a valuation of $600-700 million, with Malaysian sovereign fund Khazanah and existing investor Tiger Global also planning to invest in the $100 million funding round.

GoMechanic has serviced and repaired more than two million cars in India through its service centers, and claims to cost 40% less than automakers’ own offerings. SoftBank has been investing in Indian startups including digital payments firm Paytm and online education firm Unacademy.

SoftBank has been in discussions with GoMechanic for more than nine months and was initially uncomfortable with the Indian firm’s valuation request of $1 billion. GoMechanic was valued at $300 million last year, and currently has a gross annual revenue of around $40 million

SoftBank has started taking a more measured approach to its investments after a global tech rout. Last month, CEO Masayoshi Son said SoftBank would invest much less this year than in 2021, following a record $26.2 billion quarterly loss at its Vision Fund on falling tech valuations.

In May, it was reported that Masayoshi Son had started telling executives to invest smaller sums at earlier stages to conserve cash. SoftBank’s second Vision Fund of $40 billion is smaller than its first $100 billion vehicle, leading it to be more conservative.