USED CAR RETAILING PLATFORM SPINNY RAISES USD 108 MN IN SERIES D ROUND LED BY TIGER GLOBAL
Mumbai, Monday - 19th July 2021
Spinny, a used car retailing platform in India, announces the closure of a USD 108 Mn Series D funding round from new and existing investors. The round was led by Tiger Global - backers of multiple Indian unicorns such as Flipkart, Byju’s, MakeMyTrip, and Zomato. Another new investor in the round is New York-based Avenir Growth. In addition to these, the round saw participation from existing investor General Catalyst and others. The latest round includes a primary capital infusion of USD 105 Mn and a secondary sale of USD 3 Mn by select angels and early-stage investors. Tiger Global and Avenir Growth invested USD 75 Mn and USD 20 Mn, respectively in the round. The overall funds raised by Spinny to date are ~ USD 230 Mn.
The newly raised capital will be deployed towards further stepping up the customer experience, strengthening technology and product capabilities, deepening market penetration in existing markets, and building teams across functions. The company also aims to increase its geographic footprint in the country.
Commenting on this development, Niraj Singh, Founder & CEO, Spinny said “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. We are delighted to have new partners on board our rocketship, in Tiger Global and Avenir Growth, and are thankful to our existing investors Accel Partners, Elevation Capital, General Catalyst, the Fundamentum Partnership, and others for their belief in our vision and tremendous support in building the platform.”
Tiger Global’s investment in Spinny is being seen as a strong validation for the startup, as Tiger Global also has a significant investment in US market leader Carvana which operates with a similar model. Spinny’s previous round of USD 65 Mn was led by General Catalyst just two months ago in April’21. General Catalyst is also an investor in similar businesses Vroom and Cazoo in the US and UK, respectively.
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About Spinny:
Founded in 2015, Spinny is a used car retailing platform that aims to bring about transparency and convenience in the car buying and selling process in India. Spinny operates across the entire value chain of pre-owned cars, embedding superior technology and processes to deliver a premium experience to customers. As a testimony of Spinny's commitment to transparency and quality, every car on the Spinny platform comes with a 200-point inspection checklist, 5-day no questions asked money-back guarantee, and 1-year after-sales warranty. Currently, Spinny has 15 car hubs that operate across 8 cities - Delhi-NCR, Bangalore, Mumbai, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad.
Visit www.spinny.com to find your dream car.
Additionally, Spinny had acquired its rival Truebil late last year and now operates it (www.truebil.com) as an independent brand that focuses on providing affordable pre-owned vehicle options in lower-budget categories.
About the team:
Spinny is founded by Niraj Singh (IIT Delhi Alumni), Mohit Gupta (Ex-Director, Flipkart), and Ramanshu Mahaur (IIT Delhi Alumni, Ex-Adobe). Niraj has had 2 successful entrepreneurial exits before he started Spinny and he was also a seed/early-stage investor in start-ups like Tripoto, JustRide (Now Drivezy), Little Black Book, Rapido Bike Taxi, MyHQ, Fango (Now SellTM), ShaadiSaga, etc. The core team consists of many ex-founders and IIT/IIM/INSEAD graduates with experience in Management Consulting, E-commerce, marketplaces, and supply chain industries.
Annexure
- How big is the used car market in India?
- Approximately 4.5 Million used/pre-owned cars were sold in India in CY19 and the market is growing at 12% CAGR
- For every new car sold, ~1.5 used cars are sold in India (in the USA this ratio is ~2.3)
- Only ~18% of the market is organized, signaling a huge opportunity
- The business model of Spinny - along with the benefits to buyers and sellers
- Founded in 2015, Spinny is a technology-enabled full-stack pre-owned car platform that aims to bring about transparency and convenience in the buying and selling process of pre-owned cars. Spinny operates on an Online-to-Offline (O2O) model, wherein discovery of cars happens online via Spinny’s website (www.spinny.com) and the customers can either request a doorstep test drive and delivery or can schedule a visit to a Spinny car hub.
Spinny operates across the value chain of pre-owned cars, starting from carefully analyzing consumer demand patterns to plan for an ideal assortment mix, to selectively handpicking cars from the available market supply, and refurbishing each car that is bought under its own guidance at self-owned workshops.
Every Spinny car is handpicked, accident-free has a clean history, and on average only 1 out 5 cars pass through Spinny’s 200 parameter inspection checklist. All Spinny cars are listed on the website (www.spinny.com) where a customer can view the assortment of cars available for sale, filter based on his or her requirement. Once a customer books a car, Spinny takes care of all the paperwork for the customer, includes free RC transfer, and provides financing options via tie-ups with reputed partners.
● Benefits to buyers
○ Maintaining quality assurance on each and every spinny car by carrying a detailed inspection across 200 parameters
○ A hassle-free experience by adopting a fixed price strategy viz. no negotiations or haggles on the pricing unlike how traditional unorganized players operate
○ Providing complete transparency on the platform (www.spinny.com) for each car by providing a detailed inspection report covering each and every minor issue with the car
○ Delightful customer experience via door-step delivery and insurance renewals and service warranty, 5 days No-Questions-Asked money-back guarantee
○ Star price-engine that eliminates all layers of middlemen and dealers, and takes into account car conditions and market trends to provide the right price for the car
○ Premium customer service by taking care of all documentation requirements post-sale of the car
● Benefits to sellers
○ Providing complete transparency via an instant offer under less than 30 minutes of inspection completion (if the car falls under Spinny criteria)
○ Delightful customer experience via door-step inspection and 10-day offer validity on the price quoted
○ Premium customer service by taking care of all documentation requirements post-sale of the car
○ Maintaining quality assurance by carrying a detailed inspection across 200 parameters
- What is the USP of the platform?
- Maintaining quality assurance on each and every spinny car by carrying a detailed inspection across 200 parameters
- Providing complete transparency on the platform (www.spinny.com) for each car by providing a detailed inspection report covering each and every minor issue with the car
- Star price-engine that eliminates all layers of middlemen and dealers, and takes into account car conditions and market trends to provide the right price for the car
- Delightful customer experience via door-step delivery and insurance renewals and service warranty, 5 days No-Questions-Asked money-back guarantee
- Premium customer service by taking care of all documentation requirements post-sale of the car
- A hassle-free experience by adopting a fixed price strategy viz. no negotiations or haggles on the pricing unlike how traditional unorganized players operate
