Home >Companies >News >Spinny raises $108 mn from investors led by Tiger

BENGALURU : Used car retailing startup Spinny has raised $108 million in primary and secondary fund infusion as part of its Series D round led by New York-based Tiger Global Management, the company said on Monday. New investor Avenir Growth also participated in the round, along with existing investor General Catalyst and others.

The latest round includes a primary capital infusion of $105 million and a secondary share sale worth $3 million by select angels and early-stage investors. It comes barely three months after the startup had raised $65 million as part of its Series C round led by General Catalyst.

The current fundraise values the startup at around $800 million, said a person aware of the matter, on the condition of anonymity.

As a part of the fundraise, Tiger Global and Avenir Growth have invested $75 million and $20 million, respectively, with existing investors contributing the rest.

The latest round takes the total funds raised till date by Spinny to $230 million.

Last month, Tiger Global also led a $42 million round in car workshop and auto spare parts startup GoMechanic.

The new capital will be deployed to strengthen Spinny’s technology and product capabilities, while deepening its market penetration and expanding to new geographies in the country.

“We are on a mission to build the most trusted and customer-loving brand in a highly fragmented and unorganized market known for its notoriety. Having a customer-first approach has been our differentiator, and we will continue to focus on improving our quality and experience control capabilities," said Niraj Singh, founder and chief executive officer, Spinny.

The six-year-old startup is a pre-owned car platform that leverages technology to bring about convenience in the buying and selling process of pre-owned cars. It claims that every car sold on its platform comes with a 200-point inspection checklist, and one-year after-sales warranty.

Spinny operates on an online-to-offline (O2O) model, where discovery of cars happens online via Spinny’s website, and customers can either request a doorstep test drive or can schedule a visit to a Spinny car hub.

At present, the platform has 15 car hubs across eight cities, including Delhi-NCR, Bengaluru, Mumbai, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad.

In 2020, Spinny sold close to 6,000 used cars on its platform. It was planning to expand its presence to six new cities by the end of 2021.

The startup competes with other players in the segment such as Cars24, which operates a used-car marketplace, and is in talks to raise $250 million, at a valuation of $2 billion, according to Bloomberg.

Other rivals include CarDekho, which is expected to raise $150 million in the coming months, pushing its valuation to more than $1 billion.

In the past, Spinny’s investors Tiger Global and General Catalyst have made investments in similar models globally. Tiger Global has a significant investment in US-based Carvana, which operates with a similar model. General Catalyst is also an investor in similar businesses Vroom and Cazoo in the US and the UK, respectively, which retail used cars on their platforms.

Close to 4.5 million used or pre-owned cars were sold in India in 2019 and the market is growing at a compound annual growth rate of 12%.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout