Spinny to buy GoMechanic in Rs 450 crore cash-and-stock deal

Spinny, a used-car retail platform, is buying GoMechanic, the Gurugram-based car-servicing and repair startup, in a transaction valued at around Rs 450 crore.

About Spinny's cash-and-stock deal

As reported by MoneyControl, the deal is structured as a mix of cash and stock, and is expected to be signed later this month.

With this, Spinny will enter the car-maintenance and after-sales services segment.

With the acquisition, Spinny will buy out the Hero Group–Lifelong Group–Stride Ventures consortium, which took control of GoMechanic in 2023 following a governance crisis leading to the exit of its founders.

GoMechanic operates a network of workshops across more than 150 cities. As reported by Entrackr, it has marked a turnaround, with a streamlined operating model and improved cost structure.

The company’s turnaround has been closely watched after it was forced into an emergency sale early last year.

The incoming consortium rebuilt the company’s cost structure, rebranding its operations and restructuring contracts with partner workshops.

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More about the sale

For Gurugram-based Spinny, the purchase is a natural extension of its business model.

It has been steadily expanding across the car ownership lifecycle from sales and trade-ins to insurance and presently, servicing.

After raising $40 million earlier this year and hitting a valuation of $1.7 billion, the recent acquisition fits right into Spinny’s plan to offer more than just car sales.

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