India’s automotive services sector is undergoing a digital transformation, as platforms begin to integrate artificial intelligence and data-driven workflows into traditionally fragmented service networks. At the forefront of this shift is Smart Garage, which has raised ₹2.4 crore in a Pre-Series A funding round as part of a larger ₹15 crore fundraising plan.
The company aims to raise the remaining ₹12.6 crore over the next 12–18 months, with a clear target of achieving an ₹80 crore revenue run rate by FY27.
Building a Connected Auto-Service Ecosystem
Founded by Pawan Singh Raghuvanshi, Smart Garage operates a B2B2C platform that connects multiple stakeholders across the automotive value chain including workshops, vehicle owners, insurers, and fleet operators. The platform is designed to address inefficiencies in the auto-service industry by creating a digitally connected ecosystem, where service providers and customers can interact seamlessly.
Leveraging AI for Smarter Vehicle Servicing
At the core of Smart Garage’s offering is its AI-driven and SaaS-enabled technology stack, which enhances operational efficiency and decision-making across garages.
Key capabilities include:
- AI-based vehicle diagnostics
- Automated damage assessment
- Predictive maintenance insights
- Workflow automation for service centres
By integrating these tools, Smart Garage aims to help garages improve turnaround time, reduce errors, and deliver a more consistent customer experience.
Scaling a Nationwide Garage Network
The startup has already built a network of over 500 partner garages across Tier I and Tier II cities.
Looking ahead, Smart Garage plans to scale this network to 10,000+ workshops by 2030, significantly expanding its footprint across India.
This expansion strategy reflects a broader ambition to become a standardized digital layer for auto servicing, enabling uniform service quality across geographies.
Strengthening Partnerships Across the Value Chain
The newly raised capital will be deployed to:
- Enhance AI capabilities and product innovation
- Expand its partner garage network
- Deepen integrations with OEMs, insurance companies, and fleet operators
These integrations are expected to play a key role in creating a fully interconnected automotive ecosystem, where data flows seamlessly between stakeholders.
Evolving Revenue Model for Sustainable Growth
Smart Garage currently operates on a hybrid revenue model, driven by:
- Franchise operations
- Spare parts supply
As it scales, the company plans to introduce additional revenue streams, including:
- SaaS-based subscriptions for garages
- Commission-based models linked to transactions
This multi-layered monetization strategy is designed to ensure long-term scalability and recurring revenue.
The Road Ahead
With India’s vehicle ownership steadily rising and the aftermarket services sector expanding rapidly, the need for standardized, tech-enabled servicing solutions is becoming increasingly critical.
Smart Garage’s approach combining AI, SaaS, and a marketplace model positions it to play a pivotal role in transforming how vehicle servicing is delivered across the country.
As the company works toward its ambitious growth targets, its ability to scale technology, partnerships, and network density will determine how effectively it can redefine the future of auto services in India.
