Spinny, an Indian online marketplace for used cars, is in the process of raising approximately $160 million as it gears up to acquire car services startup GoMechanic, according to sources familiar with the matter. The funding round, known as Series G, will involve a combination of primary and secondary transactions, potentially valuing the 10-year-old startup at around $1.8 billion post-money, in line with its previous valuation.
A significant portion of the round, nearly $90 million, will be primary funding. Accel, an existing investor, has already contributed approximately $44 million towards this amount, with additional details of the investment disclosed in regulatory filings in India. While a new investor is set to participate in the remaining primary funding, specific details are yet to be confirmed.
WestBridge Capital is reportedly doubling down on its investment in Spinny, with a contribution of a similar size to its previous investment in the Series F round earlier this year. The secondary portion of the transaction is said to be facilitated by Indian VC firm Fundamentum and Blume Ventures, with Accel, Fundamentum, and Blume Ventures declining to comment on the matter. WestBridge Capital also refrained from providing a comment.
In a strategic move, Spinny is raising this new round specifically to finance the acquisition of GoMechanic and further invest in its platform, without tapping into its existing cash reserves. Reports suggest that Spinny could potentially acquire GoMechanic for around â‚ą4.5 billion in a cash-and-stock deal. GoMechanic, previously backed by prominent investors such as Sequoia Capital, Tiger Global, and SoftBank, was acquired by a consortium led by Lifelong Group in 2023 after issues with financial reporting.
The acquisition of GoMechanic would enable Spinny to strengthen its position across the used-car value chain. By integrating GoMechanic’s services, Spinny aims to enhance its after-sales servicing capabilities and broaden its customer base. This strategic move aligns with Spinny’s goal to expand its presence in India’s rapidly growing used-car market, which is projected to reach approximately 9.5 million units by 2030.
Apart from the GoMechanic acquisition, Spinny has been actively diversifying its offerings in the automotive market. In recent months, the startup has acquired auto publications such as Autocar India, Autocar Professional, and What Car? India, and launched Spinny Capital, a non-banking finance company that provides vehicle loans to customers.
Spinny’s co-founder and CEO, Niraj Singh, chose not to comment on the developments. The GoMechanic deal represents a significant milestone for Spinny as it continues to expand its presence and services in India’s dynamic automotive industry.
