Indian used-car marketplace Spinny is in the process of raising nearly $160 million in new funding as part of a larger plan to acquire car servicing platform GoMechanic. The latest funding round is expected to value the decade-old company at around $1.8 billion after the investment.
The funding round includes a mix of new capital and share sales by existing investors. A significant portion of the money raised will go directly into the company to support strategic expansion, while the rest will allow some early investors to partially exit. Several existing backers have increased their exposure to the company in this round, signalling continued confidence in Spinny’s long-term growth.
Unlike earlier fundraises that were focused on scaling Spinny’s used-car sales operations, this round is being raised specifically to support the acquisition and strengthening of GoMechanic’s platform. The deal is expected to be a mix of cash and equity, and Spinny is reportedly choosing not to dip into its existing cash reserves for the transaction.
GoMechanic had undergone a major transition in 2023 after internal issues related to financial reporting came to light, following which the company was taken over by a new ownership group. Once a fast-growing name in India’s auto-services space, GoMechanic operates a wide network of service centres and digital tools for car maintenance and repairs.
For Spinny, the acquisition is expected to bring after-sales services under its own umbrella. While the company already manages inspection, refurbishment, and resale of used vehicles through its infrastructure, servicing and maintenance are currently handled by third-party garages. Integrating GoMechanic would allow Spinny to offer a more end-to-end experience to car buyers and sellers.
Industry observers believe the deal could also help Spinny attract new vehicle owners through GoMechanic’s service platform, creating an additional channel for sourcing used cars. This approach could help the company grow inventory without sharply increasing marketing costs.
The move comes at a time when India’s used-car market continues to expand steadily, driven by rising vehicle ownership, price sensitivity among buyers, and growing trust in organised digital platforms. Spinny has been actively broadening its footprint beyond car sales in recent months, including expanding into automotive media and vehicle financing.
With this acquisition, Spinny is positioning itself as a more comprehensive automotive platform, covering discovery, purchase, financing, and long-term ownership services under one ecosystem.
