Spinny, a full stack pre-owned car platform, is happy to announce the closure of USD 43.7 Mn (~INR 315 Cr.) Series B round backed by The Fundamentum Partnership (India), Accel (Accel India & Accel Growth USA), SAIF Partners (India), General Catalyst (USA), KB Financials (South Korea), and a few angels.
The funds will be used to invest in technology, strengthen business teams, enhance customer experience and, expand to newer cities. Spinny is currently present across 6 cities in India (Delhi, Gurgaon, Noida, Bengaluru, Hyderabad, and Pune) and has sold close to 10,000 cars through its platform.
The used car segment in India is on a fast growth trajectory owing to the rise in first time car buyers looking for quality yet affordable four wheelers and at the same time existing car owners reducing their holding time from 6-7 years to 3-4 years, upgrading to newer models. According to industry reports, for every new car sold in India, approximately 1.3 used cars are sold. Currently, the Indian pre-owned car market stands at ~4.3 mn units sold annually, growing at ~14% CAGR. Despite the soaring demand, only ~18% of the market is organized with most of the buying and selling of cars happening through unorganized means. This fragmented nature of the market offers a huge opportunity for digital-first players like Spinny to organize and disrupt the space.
Talking about the latest fund raise Niraj Singh, Co-Founder & CEO, Spinny said, “With increasing disposable income levels and evolving consumer demand, we want to be the market leader in the organized used car market segment, and provide our customers a completely trustworthy and hassle-free buying experience. The latest round of funding is another milestone in our commitment to deliver an unparalleled customer experience and underlines the confidence the investor community has in our team and Spinny’s business model.“
Commenting on this development Nandan Nilekani, Co-founder and Chairman, The Fundamentum Partnership said, “I like full stack businesses that are building competitive differentiation as they scale. Spinny’s operating model fits into Fundamentum’s thesis of backing long-term oriented entrepreneurs to solve complex business problems using technology and who aspire to build a company at scale and to last.”
Commenting on this development, Anand Daniel, Partner, Accel Partners (India) said, “Buying a used car still remains a big problem from a customer point of view and Spinny solves this with their meticulous and customer friendly approach. At Accel, we like to partner with founders who look to build long-term sustainable businesses, and found the right fit in Niraj and his team.”
Commenting on this development, Mukul Arora, Managing Director, SAIF Partners said, “Spinny’s approach to solve for trust deficiency in a highly unorganized segment is unique and one that has a strong brand recall value. We are excited to be early backers of Spinny and look forward to it emerging as a market leader in the space.”
Commenting on this development, Ashish Kumar, Partner, The Fundamentum Partnership said, “While on the surface this looks like a space with many digital players, no-one has built an entire value chain for used car buying platform at the scale that Spinny has. Niraj and team have truly made used car buying process seamless on their platform and have added value to the customer.”
Commenting on this development, Vinod Murali, Managing Partner, Alteria Capital said, “Spinny has shown very sharp growth in the last 12 months and solved for some key issues across geographical markets, especially in an operationally intensive business. Niraj and his entire team have shown a lot of tenacity and focus to ensure that the progress has been better than plan. We are happy to contribute further to their exciting journey.”