Gurugram-based used car marketplace Spinny has raised $13.2 Mn in Series A funding round led by Accel and SAIF Partners. Existing investors such as Blume Ventures and Simile Ventures had also participated in the round. Raghunandan G (cofounder and former CEO Taxi For Sure) and Haresh Chawla (partner at True North PE firm) also joined the round in their personal capacity and Alteria Capital provided venture debt.
They had raised $1 million (around Rs 6.4 crore) in a seed round of funding led by Blume Ventures in June 2017. The Indian Angel Network and Freecharge co-founders Kunal Shah and Sandeep Tandon had also participated in the round then.
The startup was founded in 2015 by Niraj Singh, an alumnus of the Indian Institute of Technology-Delhi. The startup operates on a full-stack dealership model, using technology to source and maintain the right inventory. Users can choose from a wide pool of non-accidental, non-meter-tampered, inspected, high-quality cars. A user can their used car by filing the details of their car on the web portal. It is currently active in Delhi NCR and has thee car hubs each in Delhi, Gurgaon and Noida, and is planning to open at least five more hubs by the end of this year.
The funds raised will be used for strengthening the team across functions, improving inventory assortment and expanding Spinny’s coverage to newer locations.
Commenting on the funding deal, Mukul Arora, managing director of SAIF Partners said, “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.
“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.
According to a report by Techsciresearch, the Indian used car market is projected to reach over $66 Bn by 2022, riding on the growing population and rising urbanisation in the country. Some of the major players operating in India used car market are Maruti True Value, Mahindra First Choice Wheels, Hyundai H Promise, Das Welt Auto, Ford Assured, Toyota U Trust, Honda Auto Terrace, BMW Premium Selection, Audi Approved Plus, Mercedes-Benz Certified, Cars24, CarTrade, CarDekho etc.