India’s Spinny strains up $160M funding to purchase GoMechanic, sources say

Spinny, an Indian on-line market for used vehicles, is elevating round $160 million because it strikes to purchase automobile providers startup GoMechanic, TechCrunch has discovered.

The Sequence G spherical, which incorporates a mixture of main and secondary transactions, would worth the 10-year-old startup at about $1.8 billion post-money, three folks acquainted with the matter mentioned, broadly in step with its earlier valuation.

Almost $90 million of the spherical is main, folks mentioned; Current investor Accel has already wired about $44 million of that quantity, with some details of the funding showing in regulatory filings in India this week, which Indian outlet Entrackr first reported. A brand new investor is collaborating in the remaining portion of the main, however TechCrunch might not affirm its specifics.

WestBridge Capital is doubling down in the new spherical with a test of an identical measurement to its earlier funding, the folks mentioned. The agency invested about $35 million to $40 million in Spinny’s Sequence F spherical earlier this yr.

A lot of the secondary portion of the transaction is being bought by Indian VC agency Fundamentum, in accordance to the folks, whereas Blume Ventures is additionally anticipated to pare a part of its stake.

Accel, Fundamentum, and Blume Ventures did not reply to requests for feedback. WestBridge Capital declined to remark.

In March, Spinny raised $131 million in the first a part of its Sequence F spherical led by Accel, with participation from Fundamentum, before increasing the elevate to about $170 million in June to embody WestBridge Capital. These funds had been earmarked to scale Spinny’s core used-car enterprise.

Nonetheless, the new spherical is being raised particularly to finance the acquisition of GoMechanic and spend money on its platform, with out drawing on the startup’s current money reserves, the folks mentioned. Earlier studies instructed Spinny might purchase GoMechanic for around ₹4.5 billion (roughly $49.70 million) in a cash-and-stock deal.

A consortium led by Lifelong Group acquired GoMechanic in 2023 after the startup admitted to “grave errors” in its financial reporting. The startup had beforehand been backed by high-profile buyers, together with Sequoia Capital, Tiger International, and SoftBank.

For Spinny, buying GoMechanic would deepen its management throughout the used-car worth chain. The Gurugram-based startup has constructed a big consumer-facing enterprise, promoting about 13,000 used vehicles a month, primarily immediately to consumers and, to a lesser extent, to sellers by way of its public sale platform. Spinny operates its personal massive reconditioning facilities to refurbish automobiles before sale and depends on third-party service retailers for after-sales servicing of buyer vehicles — a niche GoMechanic might deliver in-house.

GoMechanic would additionally act as a “two-way” funnel for Spinny, an individual acquainted with the matter mentioned. The platform would service automobiles purchased or bought by way of Spinny, and assist appeal to automobile house owners who might not but be prospects. That might assist increase Spinny’s car provide with out considerably rising buyer acquisition prices.

The acquisition comes as India’s used-car market is projected to develop at a compound annual growth rate of about 10% to roughly 9.5 million items by 2030, from practically 6 million items right this moment, per a latest report by Mahindra First Alternative and Volkswagen Pre-owned Licensed.

The GoMechanic deal would mark Spinny’s newest transfer to broaden its footprint in India’s automotive market. In latest months, the startup has expanded past used-car gross sales by acquiring auto publications Autocar India, Autocar Skilled and What Automotive? India from London-based media group Haymarket, and by launching a non-banking finance company, Spinny Capital, to provide car loans to prospects.

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