Gurugram-based online used car retailing platform Spinny on Monday announced it has raised $43.7 million (about Rs 315 crore) in a Series B funding round led by Fundamentum Partnership (FP), a growth-capital fund backed by tech veterans Nandan Nilekani and Sanjeev Aggarwal.
The round also counts new investors — US-based General Catalyst Partners and Korea-based KB Financial Group and existing investors Accel, SAIF Partners and Alteria Capital, as co-investors. The funds will be used to invest in technology, strengthen business teams, enhance customer experience and expand to newer cities, Spinny said.
“The FP 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,” Nandan Nilekani, Co-founder, and Chairman, FP said.
“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,” he added.
Ashish Kumar, Partner, Fundamentum Partnership, will also join the Spinny board.
Founded in 2015 by Niraj Singh, Mohit Gupta, and Ramanshu Mahuar, Spinny is a pre-owned car platform. Its 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. The startup currently operates in 4 cities across the country and has sold around 10000 cars to date. The company started out as a listing platform only, but later on, switched to a selling platform controlling all aspects of the process. The firm buys used cars, gets them inspected from in-house mechanics and then lists them for sale.
“Since there are no middlemen, we are able to sell the cars at more affordable prices and we offer a five-day, no-question asked full-refund if someone is not satisfied with their purchase,” Niraj Singh, co-founder of Spinny, claimed.
“On top of that, we also offer a year-long warranty on these cars,” he said.
Spinny had raised $1 million in its seed round from Blume Ventures and Simile Ventures in June 2017. More recently, it had closed its Series A round of $13.2 million co-led by SAIF Partners and Accel in April last year. The latest funding puts the total amount secured at around $57 Million, putting the valuation at about $150 Million.
The startup competes with the likes of Cars24, Car Dekho, Car Trade, and Droom, all of whom are also heavily-backed.
Updated with statements from Fundamentum and Spinny.
