India’s Spinny lines up $160M funding to acquire GoMechanic, sources say

Spinny, a leading Indian online marketplace for used cars, is raising about $160 million as it prepares to acquire car services startup GoMechanic, TechCrunch has learned.

According to three people familiar with the matter, the Series G round—a combination of primary and secondary transactions—will value the 10-year-old company at roughly $1.8 billion post-money, consistent with its previous valuation.

Approximately $90 million of the round is primary capital, the sources said. Existing investor Accel has already contributed around $44 million, with regulatory filings in India revealing details of the investment this week, as first reported by Entrackr. A new investor is expected to cover the remaining primary allocation, though TechCrunch could not confirm further specifics.

WestBridge Capital is also doubling down by investing an amount similar to its participation in Spinny’s Series F round earlier this year. The firm previously invested between $35 million and $40 million.

Much of the secondary transaction involves Indian VC firm Fundamentum selling part of its stake, while Blume Ventures is also expected to reduce its holdings. Accel, Fundamentum, and Blume did not respond to requests for comment; WestBridge declined to comment.

Funding tied directly to the GoMechanic acquisition

In March, Spinny raised $131 million in the first phase of its Series F round, led by Accel with participation from Fundamentum. That raise later expanded to about $170 million in June, with WestBridge joining. Those funds were intended to grow Spinny’s core used-car operations.

The new funding, however, is being explicitly raised to purchase GoMechanic and invest in its platform without drawing on Spinny’s existing reserves, the sources said. Previous reports indicated Spinny was considering acquiring GoMechanic for ₹4.5 billion (approximately $49.7 million) in a cash-and-stock deal.

GoMechanic was taken over in 2023 by a consortium led by Lifelong Group after the company admitted to “grave errors” in its financial reporting. Before the scandal, it had been backed by major investors including Sequoia Capital, Tiger Global, and SoftBank.

Strengthening Spinny’s position in India’s used-car ecosystem

For Spinny, acquiring GoMechanic would significantly expand its reach across the used-car value chain. The Gurugram-based company sells around 13,000 used cars per month, primarily to consumers and through its auction platform for dealers. Spinny also operates large reconditioning centres to refurbish vehicles before sale, but currently relies on third-party service centres for after-sales support—a gap GoMechanic could fill.

GoMechanic would additionally serve as a “two-way funnel,” one source said. The platform could both service cars bought or sold through Spinny and attract existing car owners who may later become Spinny customers. This would help increase vehicle supply while keeping customer acquisition costs low.

The acquisition comes at a time when India’s used-car market is projected to grow at a 10% CAGR, reaching around 9.5 million units by 2030, up from nearly 6 million units today, according to a report from Mahindra First Choice and Volkswagen Pre-owned Certified.

Spinny’s broader expansion strategy

The GoMechanic deal is part of Spinny’s broader effort to expand its presence in India’s automotive sector. In recent months, the startup has moved beyond used-car retail by acquiring the auto publications Autocar India, Autocar Professional, and What Car? India from U.K.-based Haymarket. It has also launched Spinny Capital, a non-banking financial company offering vehicle loans.

Spinny co-founder and CEO Niraj Singh declined to comment.