India’s Spinny lines up $160M funding to acquire GoMechanic, sources say

Spinny, an Indian online marketplace for used cars, is raising around $160 million as it moves to acquire car services startup GoMechanic, TechCrunch has learned.

The Series G round, which includes a mix of primary and secondary transactions, would value the 10-year-old startup at about $1.8 billion post-money, three people familiar with the matter said, broadly in line with its previous valuation.

Nearly $90 million of the round is primary, people said; Existing investor Accel has already wired about $44 million of that amount, with some details of the investment appearing in regulatory filings in India this week, which Indian outlet Entrackr first reported. A new investor is participating in the remaining portion of the primary, but TechCrunch could not confirm its specifics.

WestBridge Capital is doubling down in the new round with a check of a similar size to its previous investment, the people said. The firm invested about $35 million to $40 million in Spinny’s Series F round earlier this year.

Much of the secondary portion of the transaction is being sold by Indian VC firm Fundamentum, according to the people, while Blume Ventures is also expected to pare part of its stake.

Accel, Fundamentum, and Blume Ventures did not respond to requests for comments. WestBridge Capital declined to comment.

In March, Spinny raised $131 million in the first part of its Series F round led by Accel, with participation from Fundamentum, before expanding the raise to about $170 million in June to include WestBridge Capital. Those funds were earmarked to scale Spinny’s core used-car business.

However, the new round is being raised specifically to finance the acquisition of GoMechanic and invest in its platform, without drawing on the startup’s existing cash reserves, the people said. Earlier reports suggested Spinny could buy GoMechanic for around ₹4.5 billion (approximately $49.70 million) in a cash-and-stock deal.

A consortium led by Lifelong Group acquired GoMechanic in 2023 after the startup admitted to “grave errors” in its financial reporting. The startup had previously been backed by high-profile investors, including Sequoia Capital, Tiger Global, and SoftBank.

For Spinny, acquiring GoMechanic would deepen its control across the used-car value chain. The Gurugram-based startup has built a large consumer-facing business, selling about 13,000 used cars a month, primarily directly to buyers and, to a lesser extent, to dealers through its auction platform. Spinny operates its own large reconditioning centers to refurbish vehicles before sale and relies on third-party service shops for after-sales servicing of customer cars — a gap GoMechanic could bring in-house.

GoMechanic would also act as a “two-way” funnel for Spinny, a person familiar with the matter said. The platform would service vehicles bought or sold through Spinny, and help attract car owners who may not yet be customers. That could help expand Spinny’s vehicle supply without significantly increasing customer acquisition costs.

The acquisition comes as India’s used-car market is projected to grow at a compound annual growth rate of about 10% to roughly 9.5 million units by 2030, from nearly 6 million units today, per a recent report by Mahindra First Choice and Volkswagen Pre-owned Certified.

The GoMechanic deal would mark Spinny’s latest move to broaden its footprint in India’s automotive market. In recent months, the startup has expanded beyond used-car sales by acquiring auto publications Autocar India, Autocar Professional and What Car? India from London-based media group Haymarket, and by launching a non-banking finance company, Spinny Capital, to offer vehicle loans to customers.

Spinny co-founder and CEO Niraj Singh declined to comment.