Smart Garage raises ₹2.4 Cr to scale AI auto services

Smart Garage, an AI-based auto-service platform, has raised ₹2.4 crore (around $257,000) in a pre-Series A funding round. This is the first part of its larger ₹15 crore fundraising plan. While most investors have not been publicly disclosed, reports suggest support from Startup Haryana. The company plans to raise the remaining ₹12.6 crore within the next 12 to 18 months.

Founded in 2018 and based in Faridabad, Smart Garage is working to organise India’s unstructured vehicle servicing market. The startup has been profitable within its first five years and reported ₹8.31 crore in revenue as of March 2024. With this new funding, the company aims to reach a revenue run-rate of ₹80 crore by FY27.

Focus on Technology and Network Expansion

Smart Garage will use the fresh funds mainly to improve its technology. The company plans to upgrade its AI and deep-learning systems to offer better vehicle diagnostics, damage detection, and predictive maintenance.

At the same time, it will expand its network of partner garages by improving training and onboarding processes. The startup also wants to strengthen its connections with vehicle manufacturers, insurance companies, and fleet operators to build a stronger ecosystem.

FundingGIVA Raises Rs 975 Cr Led By Multiples To Cross 1,000 StoresFundingLet’s Game Now Raises Rs 30 Cr To Build Its Franchise Esports League

The platform follows a B2B2C and online-to-offline model. It connects vehicle owners with service centres while also supporting businesses like insurers and fleet companies. Its revenue comes from franchise fees and spare parts sales, and it plans to add SaaS subscriptions and commission-based income in the future.

Growth, Business Model, and Future Plans

Smart Garage currently has over 500 partner garages across 24 states and two countries. It has served more than 1 million customers and handles around 550 service requests daily. Its supply network includes 5,000+ retail shops, 10+ distributors, and over 15,000 mechanics.

The company runs multiple verticals such as Pikpart (spare parts), Pikpart Electric (EV services), and Claim Champion (insurance claim solutions). It also offers franchise models like FOFO and FICO, allowing both business owners and investors to join its network. Looking ahead, Smart Garage aims to expand to over 10,000 workshops and onboard 10 million users by 2030, strengthening its position in India’s growing auto-service market.