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Spinny Raises $160 Million to Acquire GoMechanic, Expand Used-Car Business
Spinny, an Indian online marketplace for used cars, is raising around $160 million in a Series G round, which includes a mix of primary and secondary transactions, according to sources familiar with the matter. This funding round values the 10-year-old startup at about $1.8 billion post-money, broadly in line with its previous valuation. The new investment is specifically aimed at financing the acquisition of car services startup GoMechanic and investing in its platform, without drawing on the startup’s existing cash reserves.
Investment Details and Acquisition Plans
Nearly $90 million of the round is primary, with existing investor Accel already wiring about $44 million of that amount. WestBridge Capital is also doubling down in the new round with a check of a similar size to its previous investment, which was around $35 million to $40 million in Spinny’s Series F round earlier this year. Much of the secondary portion of the transaction is being sold by Indian VC firm Fundamentum, while Blume Ventures is also expected to pare part of its stake.
The acquisition of GoMechanic is a strategic move for Spinny, as it would deepen its control across the used-car value chain. GoMechanic would bring in-house after-sales servicing of customer cars, a gap that Spinny currently relies on third-party service shops to fill. The platform would also act as a “two-way” funnel for Spinny, servicing vehicles bought or sold through Spinny and attracting car owners who may not yet be customers. This could help expand Spinny’s vehicle supply without significantly increasing customer acquisition costs.
Market Growth and Expansion Plans
India’s used-car market is projected to grow at a compound annual growth rate of about 10% to roughly 9.5 million units by 2030, from nearly 6 million units today, according to a recent report by Mahindra First Choice and Volkswagen Pre-owned Certified. The GoMechanic deal would mark Spinny’s latest move to broaden its footprint in India’s automotive market. In recent months, the startup has expanded beyond used-car sales by acquiring auto publications Autocar India, Autocar Professional, and What Car? India from London-based media group Haymarket, and by launching a non-banking finance company, Spinny Capital, to offer vehicle loans to customers.
Spinny co-founder and CEO Niraj Singh declined to comment on the funding and acquisition plans. However, the move is seen as a significant step for the company, as it looks to consolidate its position in the Indian used-car market. With the acquisition of GoMechanic, Spinny would be able to offer a more comprehensive range of services to its customers, from buying and selling used cars to servicing and maintenance.
For more information on Spinny’s funding and acquisition plans, Here
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