Spinny, an online platform for selling used cars, has received $ 43.7 million from a cohort of influential investors in a new round of financing to expand into other Indian cities.
The Series B financing round for the Gurgaon-based startup was led by Fundamentum Partnership, the growth capital fund supported by tech veterans Nandan Nilekani and Sanjeev Aggarwal. General Catalyst Partners, located in the United States, KB Financial Group located in Korea and existing investors Accel, SAIF Partners and Alteria Capital also participated in the round.
The four-year-old startup has raised around $ 57 million to date, and according to a person familiar with the matter, the new round has resulted in a post-money valuation of around $ 150 million.
Spinny operates a platform to facilitate the sale and purchase of used cars. Niraj Singh, co-founder and CEO of the startup, told theinformationsuperhighway in an interview that Spinny has the confidence factor that people are looking for when buying a car.
“Most of these people are under 35 years old. They strive for it and want better cars. But it is an annoyance for them to find a trustworthy place and deal with agents, ”he said.
The four-year-old startup from Gurgaon solves this problem by inspecting, buying and then selling the cars itself.
“Since there are no middlemen, we can sell the cars at cheaper prices and offer a five-day, fully questionable, full refund if someone is not happy with the purchase. We also offer a one-year warranty on these cars, ”he said.
Spinny now operates in four cities in India and has sold nearly 10,000 cars. Until 2017, the startup acted as a marketplace for buying and selling cars and essentially served as a listing platform. "Then we turned to control the entire supply chain," he said.
Nandan Nilekani, The co-founder and chairman of Fundamentum said the fund was impressed by Spinny's “full stack business”, which builds competitive differentiation when it scales.
"This fits with Fundamentals thesis to support long-term entrepreneurs in solving complex business problems using technology and to build a company on a large scale and in the long term," he said.
On the Spinny website, users can find the car they want to buy and then inspect and test it at the startup's physical hubs. Spinny currently has nine hubs in India that are slated to scale to 20 by the end of the year as more cities in the country are slated to scale.
It competes with heavily supported Cars24 and CarDekho, which both count Sequoia Capital as an investor, as well as Droom, which has raised over $ 130 million, and the Naspers-owned marketplace Olx.