GoMechanic plans to issue shares worth Rs 30 cr to service partners

NEW DELHI: Aftermarket automotive service and maintenance platform GoMechanic on Tuesday said it plans to issue shares worth Rs 30 crore to its service partners under an incentive plan.

Announcing the launch of a ‘partners incentive plan’ for its services partners, workshops, retailers, distributors and consultants across India, GoMechanic said it also aims to train over 5,000 mechanics in more than 1,500 workshops across the country in partnership with National Skill Development Corporation (NSDC).

“The company has proposed to issue stocks worth Rs 30 crore as a reward for its vast network of service partners. The stock options will have a 4-year vesting duration with yearly vesting at 25 per cent and a cliff period of one year,” GoMechanic said in a statement.

GoMechanic co-founder Kushal Karwa said, “The partner stock option programme is a step towards incentivising and strengthening our collaboration with our partner workshops by enabling them with the opportunity to participate in GoMechanic’s long-term value creation as well as expansion in the automotive sector”.

He further said, “This will also enable us to foster deeper connections with them and give them due recognition that they deserve”. GoMechanic said it has also partnered with the NSDC for the training of mechanics.

“The NSDC training, which starts on July 5, 2022, will be an integral part of the government body’s Skill India Mission. The three-tier training module will comprise an intense 8-module curriculum covering every aspect of a car’s construction and equips the mechanics with advanced skills,” the company said. In addition, the training will aim to create high-calibre job opportunities and adapt itself to the OEM industry standards, it added.

GoMechanic functions under a franchise-owned company-operated model. It has a presence in over 60 cities with more than 1,500 workshops.