Smart Garage, an AI-driven auto-service startup has raised ₹2.4 crore in a pre-Series A funding round as part of its larger plan to secure ₹15 crore in total capital. The company plans to raise the remaining ₹12.6 crore over the next 12–18 months to fuel expansion and achieve a ₹80 crore revenue run-rate by the end of FY27.
Building a digital aftermarket network
Founded with the vision to digitise India’s highly fragmented automotive aftermarket, Smart Garage has developed a network of over 500 partner garages across Tier-1 and Tier-2 cities.
Business model and ecosystem
Operating on a B2B2C model, the platform connects workshops, fleet operators, insurance companies, and vehicle owners through a unified, technology-enabled ecosystem that streamlines service delivery and enhances operational efficiency.
Bets on solving operational inefficiencies
Smart Garage Founder & CEO Pawan Singh Raghuvanshi said, “This ₹2.4 crore Pre-Series A round marks the start of our broader ₹15 crore fundraising journey. While the industry often focuses on hardware fixes, we believe real impact comes from solving deeper operational inefficiencies through AI and technology. Our goal is to build a transparent, trusted, and fully digital automotive aftermarket ecosystem in India—one that empowers workshops and delivers a seamless experience to customers.”
Market opportunity
India’s automotive aftermarket, currently valued between $11–14 billion, is expected to expand to over $20–25 billion in the next decade, driven by rising vehicle ownership, growth in the used-car market, and increasing demand for reliable, organised, and tech-enabled service solutions. Smart Garage is strategically positioned to tap into this opportunity by bringing structure, standardisation, and transparency to an otherwise unorganised sector through its AI-powered and SaaS-based platform. The company aims to scale its network to more than 10,000 workshops by 2030, strengthening its presence across the country.
Use of funds
The capital raised will be deployed to enhance AI and deep-learning capabilities, particularly in areas such as vehicle diagnostics, damage assessment, and predictive maintenance.
Expansion and partnerships
It will also support the expansion and standardisation of its existing garage network through structured onboarding and training programmes, while strengthening digital workflows and improving operational efficiency across partner workshops. Additionally, Smart Garage plans to deepen integrations with OEMs, insurance providers, and fleet operators to further strengthen its ecosystem.
Revenue model evolution
Smart Garage currently operates on a hybrid revenue model driven by franchise operations and spare parts supply through Pikpart, with plans to introduce commission-based and SaaS subscription models.
Value proposition for garages
Garages onboarded onto the platform benefit from AI-powered tools, including diagnostics support, repair recommendations, inventory optimisation, job-card automation, and analytics dashboards, enabling them to enhance service quality and scale their operations.
Growth outlook
Over time, the company aims to monetise these offerings through recurring SaaS subscriptions alongside transaction-based revenue streams, creating a scalable and predictable business model aligned with its target of reaching ₹50 crore in revenue by FY27.