Used car retailing platform Spinny has raised $43.7 million (Rs 315 crore) in a Series B funding round led by The Fundamentum Partnership, the growth-capital fund backed by Nandan Nilekani and Sanjeev Aggarwal.
The financing also saw participation from new investors US-based General Catalyst Partners, Korea based KB Financial Group, and existing investors Accel, SAIF Partners and Alteria Capital as co-investors, the startup said in a statement.
As part of the deal, Ashish Kumar, Partner, Fundamentum will join the Spinny board.
Spinny will use the corpus raised to invest in technology, strengthen business teams, enhance customer experience and to expand to newer cities. It is currently present across 4 cities in India and claims to have sold close to 10,000 cars through its platform, the statement added.
“I like full stack businesses that are building competitive differentiation as they scale. The Fundamentum team was impressed with Spinny team’s ability to use technology to solve for operational friction in the business, and thereby build a sustainable advantage. This 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,” Nilekani said.
Founded in 2015 by Niraj Singh, Mohit Gupta and Ramanshu Mahuar, Spinny’s online-to-offline (O2O) model allows customers to discover cars online on Spinny’s website and make the final purchase offline at a Spinny Car Hub. Once a customer books a car, Spinny takes care of all the paperwork for the customer, including free RC transfer and, provides financing options via tie-ups with banking partners.
Quoting industry reports, the startup said that 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 million units sold annually, growing at ~14% CAGR. However, 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 offers a huge opportunity for digital first players.
Spinny had raised its seed round from Blume Ventures and Simile Ventures, and most recently it had closed its Series A round of $13.2 million co-led by SAIF Partners and Accel in April last year.