Spinny to acquire GoMechanic in Rs 450 crore cash-plus-stock deal

Spinny

Used-car retail platform Spinny is set to acquire GoMechanic, the Gurugram-based car-servicing and repair startup, in a transaction valued at around Rs 450 crore, people familiar with the matter told Moneycontrol.

The deal, structured as a mix of cash and stock, is expected to be signed later this month and will mark Spinny’s entry into the car-maintenance and after-sales services segment.

The acquisition will see Spinny buy out the Hero Group–Lifelong Group–Stride Ventures consortium, which took control of GoMechanic in 2023 following a governance crisis that led to the exit of its founders. The consortium replaced the earlier leadership, restructured operations and brought the company back to stability. The management team appointed during that process will continue to run the business after the transaction, the people cited above said.

GoMechanic, which operates a network of workshops across more than 150 cities, has since marked a turnaround, with a streamlined operating model and improved cost structure, the people added.

Entrackr was the first to report the development.

What led to the GoMechanic acquisition?

GoMechanic’s turnaround has been closely watched after it was forced into an emergency sale early last year. The incoming consortium overhauled the company’s cost structure, rebranded its operations and restructured contracts with partner workshops. For the investors, the Spinny deal marks a clean exit from what had been a distressed asset less than two years ago.

For Spinny, the acquisition is a natural extension of its business model. The Gurugram-based firm has been steadily expanding across the car ownership lifecycle — from sales and trade-ins to insurance and now, servicing. By integrating GoMechanic’s nationwide network, Spinny plans to build a seamless ownership experience for buyers on its platform, creating repeat touchpoints long after the sale.

How does this fit into Spinny’s broader strategy?

The GoMechanic deal caps a year of consolidation and renewed financial strength for Spinny. In June, the company raised $40 million from WestBridge Capital in an extended Series F round, taking total funding in that round to about $170 million at a valuation of about $1.7 billion.

In FY25, Spinny narrowed its net loss by 28 percent to Rs 424 crore, even as revenue rose 25 percent year-on-year to Rs 4,657 crore, reflecting improved operating discipline and higher volumes.

Earlier this year, it also acquired the automotive media assets of Haymarket SAC in India — including Autocar India and Autocar Professional to deepen its brand presence and content reach across the automotive ecosystem.

Is consolidation accelerating in auto-tech?

The Spinny-GoMechanic deal comes amid a broader wave of consolidation in India’s auto-tech sector. Notably, CarTrade Tech is set to acquire CarDekho Group in a transaction valued at over $1.2 billion, Moneycontrol reported earlier. If completed, the merger would combine two of India’s most established digital auto players and reshape competition for other operators such as Spinny, Cars24 and Droom.

The timing indicates that scale and lifecycle control are now becoming critical differentiators in a market that is moving from rapid growth to margin discipline.

When will Spinny acquire GoMechanic?

The transaction is expected to close by late November, subject to customary approvals. GoMechanic will retain its brand identity but will gradually be integrated into Spinny’s technology and customer interface.

For the consortium, the deal represents a successful turnaround and exit. For Spinny, it brings a new revenue vertical, a broader customer relationship, and the credibility of a stabilised, operationally sound asset