Smart Garage, an AI-driven auto-service startup based in Faridabad, has raised ₹2.4 crore in the first tranche of a planned ₹15 crore pre-Series A round, aiming to scale technology, expand its workshop network and deepen ties with insurers and fleet operators to capitalise on India’s organised vehicle servicing market.
Funding, background and financials
Founded in 2018, Smart Garage has focused on organising India’s largely unstructured vehicle service sector. The company reported profitability within its first five years and recorded revenue of ₹8.31 crore for the year ending March 2024.
The recent ₹2.4 crore infusion — part of a larger ₹15 crore raise — is reported to include support from Startup Haryana, though most investors remain undisclosed. The startup plans to secure the remaining ₹12.6 crore over the next 12–18 months to fuel its growth targets, including a projected revenue run-rate of ₹80 crore by FY27.
Technology upgrades and product focus
Smart Garage will deploy the new funds primarily to enhance its AI and deep-learning capabilities. Planned upgrades include improved vehicle diagnostics, automated damage detection and predictive maintenance tools designed to speed up fault identification and reduce turnaround times.
These technology investments are aimed at strengthening quality control across partner workshops and improving customer experience through more accurate estimates, faster service cycles and reduced repeat visits.
Network expansion and ecosystem partnerships
The company will also invest in scaling its partner-garage network by streamlining training and onboarding processes. Strengthening partnerships with original equipment manufacturers (OEMs), insurance firms and fleet operators is a stated priority to create an integrated service ecosystem.
Smart Garage operates a B2B2C and online-to-offline model that connects vehicle owners to service centres while serving businesses such as insurers and fleet managers. Current revenue streams include franchise fees and spare-parts sales, with plans to introduce SaaS subscriptions and commission-based income to diversify monetisation.
Operations, verticals and growth targets
As of now, Smart Garage partners with over 500 garages across 24 Indian states and two countries, and reports having served more than 1 million customers. The platform handles roughly 550 service requests a day and relies on a supply chain of 5,000+ retail shops, upwards of 10 distributors and a network of over 15,000 mechanics.
The company runs multiple verticals — Pikpart for spare parts, Pikpart Electric for EV services, and Claim Champion for insurance-claims assistance — and offers franchise formats such as FOFO and FICO to attract both operators and investors.
Looking ahead, Smart Garage aims to grow to over 10,000 workshops and onboard 10 million users by 2030, positioning itself to capitalise on rising vehicle ownership, the transition to electric mobility and increasing demand for organised, tech-enabled vehicle maintenance across India.
