India’s Spinny set to secure $160 million in funding for GoMechanic acquisition, sources report

Spinny Secures $160 Million to Acquire GoMechanic

Spinny, a leading Indian platform for pre-owned vehicles, is in the process of raising approximately $160 million to fund its acquisition of car services startup GoMechanic, according to information obtained by TechCrunch.

This latest Series G funding round, which includes both new and existing shares, is expected to value Spinny at around $1.8 billion after the investment—matching its previous valuation, according to three sources familiar with the deal.

Of the total funds, about $90 million will come from new capital, with Accel, an existing backer, already contributing roughly $44 million. This investment was recently reflected in regulatory documents in India, as first reported by Entrackr. Another new investor is also participating in the round, though their identity has not been confirmed by TechCrunch.

WestBridge Capital is increasing its commitment in this round, investing an amount similar to its previous contribution of $35–$40 million during Spinny’s Series F earlier this year, sources said.

On the secondary side, much of the shares being sold are from Indian venture capital firm Fundamentum, while Blume Ventures is also expected to reduce its stake.

Representatives from Accel, Fundamentum, and Blume Ventures did not respond to requests for comment, and WestBridge Capital declined to provide a statement.

Background on Spinny’s Recent Fundraising

Earlier this year, Spinny raised $131 million in the first phase of its Series F round, led by Accel and joined by Fundamentum. By June, the round had grown to $170 million with WestBridge Capital’s participation. These funds were primarily allocated to expand Spinny’s core business of selling used cars.

Purpose of the New Funding

The new capital is specifically intended to finance the GoMechanic acquisition and invest in its integration, rather than drawing from Spinny’s existing cash reserves. Previous reports indicated that Spinny could acquire GoMechanic for approximately ₹4.5 billion (about $49.7 million) through a combination of cash and stock.

GoMechanic’s Journey and Strategic Fit

GoMechanic was acquired in 2023 by a consortium led by Lifelong Group after the company disclosed significant financial reporting issues. The startup had previously attracted investment from major firms such as Sequoia Capital, Tiger Global, and SoftBank.

For Spinny, bringing GoMechanic into its fold would strengthen its position across the used-car ecosystem. Based in Gurugram, Spinny sells around 13,000 pre-owned vehicles each month, mainly to individual buyers and, to a lesser extent, to dealers via its auction platform. The company operates its own large-scale reconditioning centers to prepare vehicles for sale, but currently relies on external service providers for after-sales support—a gap that GoMechanic could help fill internally.

Expanding Spinny’s Reach

According to a source, GoMechanic would serve as a “two-way” channel for Spinny, handling maintenance for vehicles bought and sold on the platform and attracting car owners who are not yet Spinny customers. This could help Spinny increase its vehicle inventory without significantly raising customer acquisition expenses.

Market Outlook and Spinny’s Broader Strategy

The acquisition comes at a time when India’s used-car sector is expected to grow at an annual rate of about 10%, reaching nearly 9.5 million vehicles by 2030, up from around 6 million today, according to a recent study by Mahindra First Choice and Volkswagen Pre-owned Certified.

This deal represents Spinny’s latest effort to expand its presence in India’s automotive industry. Recently, the company has diversified beyond used-car sales by acquiring automotive publications such as Autocar India, Autocar Professional, and What Car? India from the UK-based Haymarket Group, and by launching Spinny Capital, a non-banking finance company that offers vehicle loans to customers.

Niraj Singh, Spinny’s co-founder and CEO, declined to comment on the matter.