Team Startupcity

• Garaaz raises Rs 4.55 crore in seed funding led by GVFL to expand operations, boost R&D, strengthen local distribution, and hire across tech, sales, and support teams.
• The SaaS-based auto parts aggregator connects workshops with genuine part distributors, aiming to streamline India's fragmented spare parts ecosystem using AI and automation.
• With 2X sales growth in FY24-25, Garaaz plans to scale nationally and modernize procurement, logistics, and customer experience in India’s $14B auto aftermarket industry.

Garaaz, a car spare parts aggregator raised Rs 4.55 crore in a seed funding round headed by GVFL. The company aims to utilize the raised funds to scale up operations across other states, enhance local distribution, partnerships, and on-ground teams, invest in technological innovation (R&D) and onboard key talent in technology, sales, marketing, and operations.

It also intends to establish scalable customer support infrastructure and take the unorganised workshops under its fold. Established in 2019 by Varun Agarwal (COO), Sahil Rally (CTO), and Shaleen Agarwal (CEO & Founder), Garaaz is a SaaS-based solution for distributing automotive spare parts. The startup bridges the workshops with automobile spare part distributors and allows them to source and manage their supply chain. Its website offers an option for workshops and distributors to buy all sorts of car parts from genuine part distributors.

Garaaz's growth strategy involves technology R&D to enable product and platform feature improvements, the creation of scalable backend systems, and data infrastructure buildout. The startup intends to invest in AI and ML to develop process automation and drive data-driven decision-making, enhancing customer experience. It aims to also simplify procurement and logistics to enhance unit economics, enable the use of tools for last-mile delivery efficiency, and improve data security and compliance with the law.

“At Garaaz, we’re not just delivering spare parts we’re powering the heart of India’s workshop economy. Every order, every delivery, every connection is backed by a tech backbone that scales trust, transparency, and efficiency across the aftermarket. Our mission is simple: make spare parts accessible, intelligent, and instant with technology so seamless, it feels invisible”, said Shaleen Agarwal.

Garaaz has reported doubling its sales in FY 24-25 compared to FY 23-24 and has expanded 3X over the last 2 years. Mihir Joshi, MD, GVFL, said, "India has made a lot of progress in the way of online markets. Now, we can purchase EV motorcycles on E-commerce websites". But the auto industry spare parts ecosystem is highly disjointed with thousands of local suppliers, middlemen, and small distributors, resulting in inefficiency and non-standardization and hence making it extremely unreliable.

Garaaz is working on this problem by bridging the critical stakeholders brands, workshops, and distributors/retailers and also promoting trust and transparency in a traditionally complex and unorganized market. The Indian auto aftermarket industry is expected to increase to $14 billion by 2028 from $10 billion in 2023, as per reports.