Spinny, a popular online platform in India for buying and selling used cars, is in the process of securing approximately $160 million to acquire the car services startup GoMechanic, according to sources at TechCrunch.
The latest funding round, known as Series G, will involve a combination of primary and secondary transactions, resulting in Spinny being valued at around $1.8 billion post-money. The majority of the funding, approximately $90 million, is primary investment, with existing investor Accel already contributing a significant amount towards this. Additionally, a new investor is expected to participate in the remaining primary investment, although specific details have not been confirmed by TechCrunch.
WestBridge Capital is reportedly increasing its investment in Spinny in this round, matching its previous contribution from the Series F round earlier this year. The secondary portion of the funding is said to involve Indian VC firm Fundamentum selling part of its stake, with Blume Ventures also expected to reduce its ownership.
The recent funding round is primarily focused on financing the acquisition of GoMechanic and further developing Spinny’s platform. This move is separate from utilizing Spinny’s existing cash reserves and is aimed at enhancing the company’s overall operations.
GoMechanic, previously acquired by a consortium led by Lifelong Group, will provide Spinny with a more comprehensive presence in the used-car market. By integrating GoMechanic’s services, Spinny aims to streamline the entire process of buying, selling, and servicing used cars for its customers.
Furthermore, the acquisition of GoMechanic is expected to strengthen Spinny’s position in the growing Indian automotive industry, aligning with the company’s recent strategic expansions beyond traditional used-car sales. These initiatives include acquiring prominent auto publications and launching a non-banking finance company to offer vehicle loans.
As India’s used-car market continues to expand, Spinny’s acquisition of GoMechanic demonstrates the company’s commitment to innovation and growth within the evolving automotive sector.
