Spinny is a Gurugram-based online used car retailing platform. It announced on Thursday that it has secured $65 million in Series C round. This round was led by silicon valley based venture capital firm, General Catalyst – early backers of Stripe, Airbnb, Cazoo, Vroom, Snapchat, and so on.
The round also had participation from new investors like Feroz Dewan’s Arena Holdings, and Think Investments. Besides these, existing investors Elevation Capital, the Fundamentum Partnership, and others also participated.
With the recent funding, the overall funds raised by Spinny to date crossed $120 million.
The official statement stated that the freshly raised capital will be employed for enhancing customer experience, exploring expansion opportunities in new markets, launching new business categories, improving technology and product capabilities, and building teams across functions. Some amount from the funds will also be used to offer exits to some seed and pre-seed-stage investors of the company.
Although the COVID-19 lockdown resulted in a fall in sales volumes in the auto market, the lifting of the lockdown restrictions witnessed a major hike in car sales as a result of a change in personal transport preferences.
With a focus on capitalizing on this strong tailwind, Spinny began its operations in four new cities – Mumbai, Chennai, Kolkata, and Ahmedabad – in January 2021, taking its presence to the top eight cities of India (including existing cities – Delhi NCR, Hyderabad, Bengaluru, and Pune).
Niraj Singh, Founder and CEO, Spinny commented on the investment saying, “With the changing needs and expectations of the customer, Spinny’s full-stack capability allows us the control to set industry benchmarks in terms of a transparent and simple car buying and selling experience. We are super excited to see our existing investor General Catalyst double down on their conviction and lead this round.”
“That’s great validation and support for the work we are doing. We welcome onboard our new investors Arena Holdings and Think Investments, and thank our existing investors Elevation Capital (prev. SAIF Partners), Accel Partners, the Fundamentum Partnership, and others for their belief in our vision and tremendous support in building the platform.”
Spinny is a tech-enabled pre-owned car platform which was established in 2015 by Niraj Singh, Mohit Gupta, and Ramanshu Mahuar. Its online-to-offline (O2O) model enables customers to find cars online on Spinny’s website, and make the final purchase offline at a Spinny Car Hub.
In the month of March last year, the O2O platform had acquired $43.7 million in a Series B financing round. The round was led by Fundamentum Partnership, a growth capital fund backed by Nandan Nilekani and Sanjeev Aggarwal.
“At General Catalyst, we constantly seek out the best companies and the best entrepreneurs, wherever they are in the world. The used car market in India is huge and ripe for reinvention. We believe Spinny is uniquely positioned to tap this opportunity–given their compelling leadership and their real market momentum. As long time investors, we’ve been impressed by how Spinny is reinventing every part of the buying process – injecting trust and safety into every aspect of the customer experience,” said Adam Valkin, General Partner, General Catalyst.
“Spinny has become India’s most trusted used car brand and is on its way to becoming India’s largest as well. It’s heartening to hear customers describe the experience of buying a used car from Spinny being better than that of buying a new car. This has been made possible because of Niraj and the entire Spinny team’s customer obsession and relentless execution. We are privileged to be their early partners and super excited to double down in this round,” added Mukul Arora, Partner, Elevation Capital.
Speaking about the new development, Shishir Gupta, Founder and CEO of StartupLanes said, “The rise in car sales post the COVID-19 lockdown has played in favor of startups like Spinny. With the fresh funding, Spinny is on its way to becoming India’s leading used-car brand.”
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