New Delhi: Used car online retailing platform Spinny has raised $13.2 million led by marquee early stage investors Accel Partners and SAIF Partners in a Series A round, the company said on late Tuesday evening in a statement. Its existing investors- Blume Ventures and Similie Ventures also participated.
Further, it has also raised ₹20 crore in venture debt from Alteria Capital, which provides loans to startups, Alteria’s managing partner Vinod Murali told Mint. Raghunandan G (Co-Founder & ex-CEO Taxi For Sure) and Haresh Chawla (Partner at True North PE firm) also invested in their personal capacity.
Founded by Niraj Singh, Mohit Gupta and Ramanshu Mahaur in 2015, the startup, run by Value Drive Technologies Pvt. Ltd., will used the funds raised for strengthening the team across functions, improving inventory assortment and expanding Spinny’s coverage to newer locations
“Solving for trust using technology and well-crafted processes has always been exciting for us, and cars represent an aspiration and a milestone for most people and we want to be a part of their daily lives,” said Niraj Singh, Founder and CEO of Spinny.
The startup is currently active in Delhi NCR and has three car hubs one each in Delhi, Gurgaon and Noida, and is planning to open at least five more hubs by end of the year.
Spinny claims that the used car market in India is currently valued at $25 billion and has been estimated to grow 15% each year to reach a market size of more than $60 billion over the next five years.
The market still largely remains unorganized and fraught with a massive trust gap, lack of standardized quality and a highly frictional customer experience, which has led to slew of tech-based startups seeking to organise the market. Cars24, CarDekho and Truebil are all looking to scale and dominate the market in this space.
Cars24 and CarDekho have together raised over $150 million in equity capital from common investor Sequoia Capital, as well as Hillhouse Capital, Axis Bank and Russian billionaire Yuri Milner’s Apolleto Asia.
“Used cars are a massive market, but buying a used car remains a painful experience, and the buyer is always worried about getting cheated. Spinny follows a full-stack approach which ensures that customers get what they are promised,” said Mukul Arora, Managing Director of SAIF Partners.