Spinny is preparing a new $160 million raise to fund its acquisition of GoMechanic and to invest in the service platform’s revamp, people familiar with the matter told DealBook. The round, known as Series G, combines primary capital with secondary share sales and is anticipated to maintain Spinny’s valuation at about $1.8 billion post-money.
The Gurugram-based used-car retailer aims to finance the deal without tapping its existing cash, highlighting how crucial an in-house servicing network has now become for full-stack auto marketplaces. The deal would further solidify Spinny’s position across the used-car value chain, covering sourcing and refurbishment to financing and after-sales.
How the new financing round impacts Spinny’s valuation
Investors participating in the round include current backer WestBridge Capital, which will double down with an investment similar to its last check, the people said. Some of the secondary sales will be by early backers, Fundamentum and Blume Ventures, with Accel still being an important shareholder. Spokesmen for Accel and for Fundamentum and Blume did not respond to requests for comment; WestBridge declined to comment.
The raise comes after Spinny’s two tranches of Series F this year—first led by Accel and then expanded with WestBridge participating as well—about $170 million in total, it sounds like. Those funds were dedicated to scaling the core used-car business. Now, compared to the prior round, this latest GoMechanic investment is joined at the hip with that company’s acquisition and platform-level investment as, perhaps, a very deliberate capital allocation decision and nudge towards true service integration post-sale.
The acquisition, in a cash-and-stock deal, will cost about ₹4.5 billion, or roughly $49.7 million at prevailing exchange rates, though final terms could still change before the deal is completed.
Why GoMechanic fits Spinny’s strategy for end-to-end car services
Spinny sells roughly 13,000 used cars a month through a combination of direct-to-consumer channels and dealer auctions. It already operates huge refurbishment centers where cars are brought to a uniform retail standard, but uses third-party garages to carry out after-sales servicing. GoMechanic adds a national service footprint, which puts maintenance, repairs, and warranty work in the tent.
Having control over after-sales is more than just increasing customer satisfaction. It opens up more revenue at higher margins, enhances warranty results, and establishes a “two-way” funnel. Owners taking their vehicles to GoMechanic for service could double up as sellers or buyers on Spinny, increasing the vehicle supply and reducing acquisition costs. This is the same rationale behind similar captures by global peers, where service lanes, subscriptions, and protection plans all dampen car retail volatility.
The tie-up also helps Spinny Capital, the company’s vehicle loan non-banking finance arm. A captive service network can drive better asset quality through maintenance compliance and vehicle health data that feeds pricing, underwriting, and resale decisions.
What the proposed Spinny deal could mean for GoMechanic
GoMechanic has been reeling since disclosing “grave errors” in financial reporting and being bought by a consortium led by Lifelong Group in 2023. The brand that was earlier backed by marquee investors such as Sequoia Capital, Tiger Global, and SoftBank still has a recall value across metro markets courtesy of its standardized service model.
With Spinny, GoMechanic gets a steady supply of cars affiliated with warranties and scheduled maintenance, and unified purchasing and technology. For Spinny, the marketplace has direct levers on turnaround time (time to resell a car), service quality, and customer retention—all areas that traditionally relied on external partners with inconsistent standards.
Market context and the evolving competitive landscape in India
India’s used-car industry is growing at a faster clip than its new car market on an increase in first-time buyers, greater financing options, and a widening pricing gap with newer models. A recent report shared by Mahindra First Choice and Volkswagen’s certified pre-owned division shows that the market will grow from almost 6 million units to around 9.5 million by 2030, at a CAGR of around 10%.
The move from informal brokers to organized, data-driven platforms is marching ahead. The sharing economy has made inroads elsewhere, and players including Cars24 and CarDekho have poured money into refurbishment, financing, and warranties even as some foreign entrants have scaled back local ambitions. In this light, Spinny’s decision to in-source service mirrors an industry-wide effort to own the customer lifecycle and shore up unit economics.
What to watch next as Spinny and GoMechanic finalize terms
Key factors include final deal terms, integration milestones, and how quickly Spinny moves post-sales volume over to GoMechanic’s network. Implementation, however, will depend on standardizing the quality of repair workmanship, managing parts acquisition at scale, and retaining technicians—a chronic pain point in all things auto service.
Spinny co-founder and CEO Niraj Singh refused to comment. If the deal goes through as described, the company would further solidify its control of the used-automobile value chain at a time when investors are rewarding operators that show cost discipline but also recurring revenue and strong customer retention.
