Spinny Raises $160 Million to Acquire GoMechanic
Spinny, the Indian online marketplace for used cars, is in the process of raising approximately $160 million to acquire car services startup GoMechanic, according to sources familiar with the matter.
The Series G funding round, a combination of primary and secondary transactions, is expected to value the 10-year-old startup at around $1.8 billion post-money, aligning with its previous valuation. Of the total amount raised, nearly $90 million is primary funding, with existing investor Accel already contributing $44 million. A new investor is also participating in the primary funding portion.
WestBridge Capital is also doubling down on its investment in Spinny, matching its previous funding amount in the new round. The secondary portion of the funding is being sold by Fundamentum and Blume Ventures.
The latest funding round is specifically aimed at financing the acquisition of GoMechanic and further investing in its platform, without using Spinny’s existing cash reserves. Reports suggest that the acquisition could cost around $49.70 million in a cash-and-stock deal.
Implications of the Acquisition
The acquisition of GoMechanic would enhance Spinny’s control over the used-car value chain, allowing for deeper integration of services. Spinny, known for selling around 13,000 used cars a month, primarily targets direct buyers and dealers through its auction platform. By incorporating GoMechanic’s services, Spinny can streamline the reconditioning and after-sales service process for its customers.
Additionally, the acquisition is expected to act as a two-way funnel for Spinny, servicing vehicles bought or sold through the platform and attracting new car owners to expand its customer base.
Expansion in India’s Automotive Market
With the used-car market in India projected to grow significantly in the coming years, the GoMechanic deal marks Spinny’s strategic move to strengthen its presence in the automotive industry. In recent developments, Spinny has diversified its offerings by acquiring leading auto publications and launching a non-banking finance company to provide vehicle loans.
Spinny’s co-founder and CEO, Niraj Singh, has not provided comments on the recent developments.
