The Funding
Smart Garage, an AI-driven auto-service marketplace, has raised Rs 2.4 crore in a Pre-Series A round. The funding is part of a plan to raise Rs 15 crore in total, with the company targeting Rs 80 crore revenue run rate by the end of FY27. According to Entrackr, Smart Garage did not disclose investor names, and the publication reached out to the company for additional information.
The proceeds will be used to expand AI capabilities, grow the partner garage network, and strengthen integrations with OEMs, insurance firms, and fleet operators. The company operates a B2B2C platform combining AI diagnostics and damage assessment with SaaS tooling and workflow automation, connecting vehicle owners, insurers, and fleet operators to garages through a digital ecosystem.
Core Technology: AI and SaaS for Vehicle Service Workflows
Smart Garage uses AI and SaaS tools for multiple components of the vehicle service process: vehicle diagnostics, damage assessment, predictive maintenance, and workflow automation for garages. The platform connects workshops, vehicle owners, insurers, and fleet operators through a B2B2C model that enables different stakeholders to interact with the software according to their operational needs.
The company’s stated plan to strengthen integrations with OEMs, insurance firms, and fleet operators indicates a technology roadmap that extends beyond garage-side digitization to cross-organization coordination. The use of AI for diagnostics and damage assessment is designed to standardize and accelerate parts of the service pipeline, though the source does not provide model details, accuracy metrics, or dataset information.
Scaling Plans and Network Growth
Smart Garage plans to raise the remaining Rs 12.6 crore over the next 12–18 months to fuel expansion. The company has built a network of over 500 partner garages across tier I and tier II cities and plans to scale to over 10,000 workshops by 2030.
The stated revenue target of Rs 80 crore by the end of FY27 reflects the company’s expectation that its technology will be deployed across a growing set of service providers. In platform businesses, scaling usage across partners can increase the value of software systems, particularly when those systems depend on repeat workflows and operational data.
Business Model and Revenue Strategy
Founded by Pawan Singh Raghuvanshi, Smart Garage currently follows a hybrid revenue model driven by franchise operations and spare parts supply. The company plans to introduce SaaS subscriptions and commission-based mechanisms.
A shift toward SaaS subscriptions could indicate a move to charge for continued access to software capabilities, including AI and automation features used by garages. The pairing of software with operational execution—through franchise operations and parts supply—may help drive adoption, as garages and partners may be more likely to use tools when tied to business activity. The source does not provide implementation specifics or pricing details for the planned subscription model.
Source: Entrackr : Latest Posts