Used car retailing platform Spinny raises $13.2m led by SAIF Partners, Accel

Photo: Reuters

Valuedrive Technologies, which owns and operates used car retailing platform Spinny, has raised $13.2 million in a Series A round of funding, led by venture capital firms SAIF Partners and Accel Partners. 

The round also saw participation from existing investors such as Blume Ventures and Simile Ventures, while venture debt firm Alteria Capital provided debt, the startup said in a statement. Raghunandan G, co-founder and former CEO of Taxi For Sure, and Haresh Chawla, partner at True North PE firm, also joined the round in their personal capacity.

As part of the investment, Anand Daniel of Accel and Mukul Arora of SAIF will join Spinny’s board of directors.

The funds raised will be used for strengthening the team across functions, improving inventory assortment and expanding Spinny’s coverage to newer locations, said a press statement.

“The Indian used car market is a significant opportunity but needs fulfilment as well as discovery for total customer satisfaction. We are very happy to support Niraj and the Spinny team as they grow quickly across various Indian cities and build a strong pan India brand,”Vinod Murali, managing partner at Alteria Capital, said.

Founded by Niraj Singh, Mohit Gupta and Ramanshu Mahaur in 2015, Spinny started as a C2C marketplace. Currently, it operates on a full-stack dealership model, using technology to source and maintain the right inventory.

The startup is currently active in Delhi NCR and has three car hubs one each in Delhi, Gurgaon and Noida. It is planning to open at least five more hubs by end of the year.

The used car market in India is currently valued at ~$25 billion and has been estimated to grow at a CAGR of ~15% to reach a market size north of $60 billion over the next five years.

“Used cars is 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,” Mukul Arora, managing director at SAIF Partners said.