Indian used-car marketplace Spinny is finalising a US$160 million funding round that will value the company at about US$1.8 billion post-money, as it prepares to acquire troubled auto services startup GoMechanic, according to sources familiar with the matter.
The fresh capital is expected to support Spinny’s expansion across India’s fast-growing mobility and automotive services market, while also financing the acquisition of GoMechanic, which has been seeking a buyer after uncovering financial irregularities earlier this year. GoMechanic, once backed by Sequoia Capital India and Tiger Global, operates a network of car repair and servicing centres across multiple Indian cities.
Spinny, which focuses on the buying and selling of pre-owned vehicles, sees the acquisition as a strategic move to deepen its presence across the vehicle ownership lifecycle, from purchase to maintenance and repairs. By integrating GoMechanic’s service infrastructure, Spinny aims to offer end-to-end solutions to car owners while improving customer retention and recurring revenue streams.
Sources say the funding round has drawn interest from existing and new investors, reflecting continued confidence in India’s digital auto platforms despite a more cautious global venture capital environment. Spinny was last valued at US$2.5 billion in 2021 during the peak of tech funding, and the new valuation reflects a broader market reset.
The acquisition would mark one of the most notable consolidation deals in India’s auto-tech space this year, highlighting how stronger platforms are stepping in to absorb distressed startups with valuable assets and customer bases.
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