Smart Garage, an AI-driven auto-service marketplace, has raised Rs 2.4 crore in a pre-Series A funding round as part of a larger plan to secure Rs 15 crore in total growth capital.
The company said it intends to raise the remaining Rs 12.6 crore over the next 12 to 18 months. This larger fundraising roadmap is aimed at supporting business expansion and helping the startup reach a revenue run rate of Rs 80 crore by the end of FY27.
The names of the investors in the current round were not disclosed.
Capital to Strengthen Technology and Market Reach
According to the company, the newly raised funds will be deployed across several strategic areas. A key focus will be the enhancement of its artificial intelligence capabilities, which form the backbone of its digital service platform.
The startup also plans to use the capital to grow its partner network and deepen integrations with original equipment manufacturers, insurance companies, and fleet operators. These partnerships are expected to play an important role in expanding Smart Garage’s service ecosystem and improving operational efficiency across stakeholders.
By investing in both technology and industry collaborations, the company is positioning itself to address increasing demand for digital solutions in the automotive aftersales and servicing space.
Building a Connected Automotive Ecosystem
Founded by Pawan Singh Raghuvanshi, Smart Garage operates on a B2B2C model that links multiple participants in the vehicle service chain through a unified digital platform.
Its ecosystem connects workshops, vehicle owners, insurers, and fleet operators, allowing each participant to access streamlined services through a technology-led interface. This model is designed to reduce inefficiencies that often exist in the fragmented vehicle repair and maintenance market.
For garages, the platform aims to simplify day-to-day operations. For customers and business partners, it offers faster service coordination and better visibility into repair processes.
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Rapid Network Growth Across Indian Cities
Smart Garage has already developed a network of more than 500 partner garages across tier I and tier II cities in India. The company now plans an aggressive scale-up strategy, targeting more than 10,000 workshops by 2030.
This expansion reflects growing opportunities in smaller and emerging urban markets, where demand for organized and tech-enabled auto servicing is rising. As more vehicle owners seek transparent pricing, faster turnaround times, and reliable service quality, digital platforms are gaining relevance.
The company’s wider network could also help standardize service delivery across locations while enabling local garages to benefit from technology tools that may otherwise be difficult to access independently.
AI Tools at the Core of Operations
Smart Garage’s platform uses artificial intelligence and software-as-a-service tools across multiple service functions. These include vehicle diagnostics, damage assessment, predictive maintenance, and workflow automation for garages.
Vehicle diagnostics tools can help identify issues more efficiently, while damage assessment systems may improve claim-related processes and repair planning. Predictive maintenance tools are designed to detect possible problems before they become major breakdowns, helping reduce downtime for vehicle owners and fleet businesses.
Workflow automation features can also support garages in managing tasks such as job tracking, service timelines, and customer coordination.
Together, these tools aim to modernize traditional workshop operations and bring greater consistency to the servicing experience.
Revenue Model Designed for Scale
The company currently follows a hybrid revenue model built around franchise operations and spare parts supply. This approach allows it to generate income from both service network expansion and automotive component distribution.
Going forward, Smart Garage plans to add new revenue streams through SaaS subscriptions and commission-based offerings. Subscription services could provide recurring income while commission models may scale alongside transaction volumes on the platform.
The addition of these channels may help diversify revenues as the company grows its user base and partner ecosystem.
Growing Momentum in Auto-Tech Services
India’s automotive services market is undergoing a shift as digital platforms bring structure to a traditionally unorganized sector. Startups offering technology-driven solutions are increasingly focusing on workshop digitization, fleet maintenance, claims support, and customer convenience.
Smart Garage’s latest fundraise signals investor interest in this evolving segment and highlights the potential for AI-led platforms to reshape vehicle servicing in the years ahead.
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