Spinny Sets Out to Acquire GoMechanic in Major Funding Round
Spinny, a leading Indian online marketplace for used cars, is gearing up to raise approximately $160 million to finance the acquisition of car services startup GoMechanic. This significant move marks a pivotal point in Spinny’s strategy to integrate across various segments of the automotive industry.
Series G Funding Details
Spinny’s Series G funding round is expected to include both primary and secondary transactions, valuing the startup at around $1.8 billion post-money. Existing investor Accel has already contributed about $44 million, with a mix of new and existing investors in the fold.
New and Existing Investors
Nearly $90 million of the capital raised will be from primary transactions, with WestBridge Capital also making a notable investment. They previously contributed between $35 million to $40 million during Spinny’s Series F round earlier this year.
The Acquisition of GoMechanic
The funds from this latest round are designated specifically for acquiring GoMechanic. Reports indicate that Spinny is looking to finalize a deal worth around ₹4.5 billion (approximately $49.70 million) in a cash-and-stock transaction.
GoMechanic’s Recent Challenges
GoMechanic was recently acquired by a consortium after facing significant financial issues. The startup had previously attracted investments from high-profile venture capital firms like Sequoia Capital and SoftBank, but admitted to serious financial mismanagement that necessitated intervention.
Strategic Benefits for Spinny
Acquiring GoMechanic would enhance Spinny’s control over the used-car ecosystem. Spinny, which currently sells about 13,000 used cars monthly, aims to bridge the gap in after-sales servicing by leveraging GoMechanic’s platform for vehicle maintenance and repairs.
The Growth of India’s Used-Car Market
As Spinny makes strategic acquisitions, India’s used-car market is expected to grow at a compound annual growth rate of 10%, projected to reach nearly 9.5 million units by 2030. This growth signifies a booming opportunity for industry players like Spinny.
Expanding Spinny’s Footprint
Beyond this acquisition, Spinny has also broadened its reach through other initiatives, such as acquiring auto publications and launching Spinny Capital, a non-banking finance company aimed at facilitating vehicle loans.
Conclusion
Spinny’s move to secure funding for the GoMechanic acquisition underscores its commitment to dominating the used-car market in India. This strategic acquisition not only aims to bolster Spinny’s service offerings but also positions it for growth in a rapidly expanding industry.
Related Keywords: Spinny, GoMechanic acquisition, used cars India, automotive market growth, Series G funding, investment in startups, car services industry.
