India’s Spinny Secures $160M Investment to Expand with GoMechanic Acquisition

Spinny Raises $160 Million to Acquire GoMechanic

Spinny, an Indian online marketplace for used cars, is in the process of raising approximately $160 million to acquire car services startup GoMechanic, according to sources familiar with the matter. The funding round, known as Series G, consists of a mix of primary and secondary transactions and is expected to value Spinny at around $1.8 billion post-money, which is consistent with its previous valuation.

The Series G round includes nearly $90 million in primary funding, with existing investor Accel already contributing $44 million of that amount. Additionally, a new investor is participating in the remaining primary funding, although specific details have not been confirmed. WestBridge Capital is also doubling down on its investment in Spinny, matching its previous contribution of approximately $35-40 million.

On the secondary side of the transaction, Indian VC firm Fundamentum is selling a significant portion of its stake in Spinny, while Blume Ventures is also expected to reduce its holdings. Accel, Fundamentum, and Blume Ventures have not provided comments on the matter, while WestBridge Capital has declined to comment.

Earlier this year, Spinny raised $131 million in the first part of its Series F round, led by Accel and Fundamentum, before expanding the round to $170 million to include WestBridge Capital. These funds were intended to fuel the growth of Spinny’s core used-car business.

The current funding round is specifically earmarked for the acquisition of GoMechanic and further investment in Spinny’s platform, without tapping into the startup’s existing cash reserves. Reports suggest that the acquisition could cost around ₹4.5 billion (approximately $49.70 million) in a cash-and-stock deal.

GoMechanic was acquired by a consortium led by Lifelong Group in 2023 following financial reporting discrepancies. Previously backed by prominent investors such as Sequoia Capital, Tiger Global, and SoftBank, GoMechanic’s acquisition by Spinny would enhance the latter’s presence in the used-car value chain.

With Spinny selling around 13,000 used cars per month and operating reconditioning centers to refurbish vehicles, GoMechanic’s inclusion could streamline after-sales servicing and expand Spinny’s customer base. The acquisition aligns with the growth projections of India’s used-car market, which is expected to reach 9.5 million units by 2030.

In addition to the GoMechanic acquisition, Spinny has recently expanded its automotive offerings by acquiring auto publications and launching Spinny Capital, a non-banking finance company. These strategic moves highlight Spinny’s commitment to diversifying its presence in India’s automotive market.

Spinny’s co-founder and CEO, Niraj Singh, has chosen not to comment on the recent developments.