Used car marketplace Spinny bags $43.7m in series B money

India-based used car platform Spinny has raised US$43.7 million in a series B round led by Fundamentum Partnership, a mid-stage-focused growth fund backed by Infosys co-founder Nandan Nilekani and investor Sanjeev Aggarwal.

The Spinny team / Photo credit: Spinny

US-based General Catalyst Partners and Korea’s KB Financial Group also participated in the round, alongside existing investors Accel, SAIF Partners, and Alteria Capital, according to a statement. The raise pushed the company’s post-money valuation to about US$150 million, according to TechCrunch.

The startup plans to use the fresh capital to improve its technology, strengthen business teams, enhance customer experience, and expand into new cities in India. Currently, the company said it has nine car hubs that operate across Delhi-NCR, Bangalore, and Hyderabad.

Spinny uses an online-to-offline model, allowing customers to discover cars on its website and make the final purchase offline at a Spinny Car Hub. Once a customer books a car, the company takes care of all the paperwork and provides them with financing options through its banking partners.

According to the statement, India’s used car segment has seen steady growth over the past few years due to the rise of first-time car buyers looking for affordable options. There are around 4.3 million units sold annually, growing at a compound annual growth rate of 14%.

Spinny, founded in 2015, looks to capitalize on this growth by offering a more organized approach to used car buying, as most of the deals in the market happen through traditional means, the company said.

“With the increase in disposable income levels and evolving consumer demand, we want to be the market leader in the organized used car market segment, and provide our customers a completely trustworthy and hassle-free buying experience,” said Niraj Singh, co-founder and CEO of Spinny.

In May last year, the company raised US$13.2 million in a series A funding round led by Accel and SAIF Partners as it looked to cover more locations and bolster its inventory.