Spinny, an Indian online marketplace for used cars, is raising approximately $160 million to finance its acquisition of the car services startup GoMechanic. This Series G funding round, which includes a mix of primary and secondary transactions, would value the ten-year-old startup at about $1.8 billion post-money. This valuation is broadly in line with its previous one.
Nearly $90 million of the new round is primary capital. Existing investor Accel has already contributed about $44 million of that amount, with details of this investment appearing in recent regulatory filings in India. A new, unspecified investor is participating in the remaining primary portion. WestBridge Capital is also doubling down with an investment similar in size to its previous commitment; the firm invested between $35 million and $40 million in Spinny’s Series F round earlier this year.
Much of the secondary portion of the transaction is being sold by the Indian venture capital firm Fundamentum, while Blume Ventures is also expected to pare part of its stake. The new funding is being raised specifically to finance the GoMechanic acquisition and invest in its platform, without drawing on Spinny’s existing cash reserves. 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. GoMechanic 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 sells about 13,000 used cars a month and operates its own large reconditioning centers. It currently relies on third-party service shops for after-sales servicing, a gap that GoMechanic could fill by bringing those services in-house.
GoMechanic would also act as a two-way funnel for Spinny. The platform would service vehicles bought or sold through Spinny and help attract car owners who may not yet be customers, potentially expanding Spinny’s vehicle supply without significantly increasing customer acquisition costs.
This acquisition comes as India’s used-car market is projected to grow at a compound annual growth rate of about 10%, reaching roughly 9.5 million units by 2030 from nearly 6 million units today.
The GoMechanic deal marks Spinny’s latest move to broaden its footprint. In recent months, the startup has expanded by acquiring the auto publications Autocar India, Autocar Professional, and What Car? India from the London-based media group Haymarket. It has also launched a non-banking finance company, Spinny Capital, to offer vehicle loans to customers.