Indian online used car marketplace Spinny has raised about $160 million to acquire auto services startup GoMechanic, TechCrunch has learned.
The Series G round, which combines primary and secondary deals, would give the 10-year-old startup a post-money valuation of about $1.8 billion, three people familiar with the matter said, roughly in line with its previous valuation.
Nearly $90 million of this round is core funding, according to people familiar with the matter. Existing investor Accel has already transferred about $44 million of that amount, with some details of the investment appearing in an Indian regulatory filing this week, first reported by Indian outlet Entrackr. New investors are participating in the remainder of the primary, but TechCrunch was unable to confirm their details.
WestBridge Capital plans to double the size of its previous investment with the new round, people said. The company invested about $35 million to $40 million in Spinney’s Series F round earlier this year.
Much of the secondary portion of the deal will be sold by Indian venture capital firm Fundamentum, with Bloom Ventures also expected to reduce its stake, the people said.
Accel, Fundamentum and Blume Ventures did not respond to requests for comment. Westbridge Capital declined to comment.
In March, Spinney raised $131 million in the first half of an Accel-led Series F round with participation from Fundamentum, and expanded that amount to approximately $170 million in June, including Westbridge Capital. These funds were used to expand Spinney’s core used car business.
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However, the new funding is being raised specifically to fund the acquisition of GoMechanic and invest in its platform, without drawing on the startup’s existing cash reserves, the people said. Previous reports suggested Spinney could acquire Go Mechanics for about 4.5 billion rupees (about $49.7 million) in a cash and stock deal.
A consortium led by Lifelong Group acquired GoMechanic in 2023 after GoMechanic admitted to “material errors” in its financial reporting. The startup was previously backed by prominent investors including Sequoia Capital, Tiger Global, and SoftBank.
For Spinney, acquiring Go Mechanic will give Spinney greater control over the entire used car value chain. The Gurugram-based startup has built a large consumer business, selling around 13,000 used cars each month, primarily directly to buyers, through its auction platform, and to a lesser extent dealers. Spinny operates its own large repair center to refurbish vehicles prior to sale and relies on third-party service shops to service customers’ vehicles after sale. This is the gap that GoMechanic could create within the company.
GoMechanic will also serve as a “two-way” funnel for Spinny, the people said. The platform services vehicles bought and sold through Spinny, helping to attract car owners who may not have become customers yet. This could allow Spinney to expand its vehicle supply without significantly increasing customer acquisition costs.
The acquisition comes at a time when India’s used car market is expected to grow from around 6 million cars currently to around 9.5 million cars by 2030 at a compound annual growth rate of around 10%, according to a recent report by Mahindra First Choice and Volkswagen Pre-Owned Certified.
The deal with GoMechanic marks Spinney’s latest move to expand its footprint in the Indian automotive market. In recent months, the startup has expanded beyond used car sales by acquiring automotive publications Autocar India, Autocar Professional, and What Car? India has partnered with London-based media group Haymarket to launch non-banking financial company Spinney Capital to provide car loans to customers.
Spinny co-founder and CEO Niraj Singh declined to comment.
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