Hundreds of thousands of used cars are sold in India every month. But buying one through the traditional channel and offline could prove to be a laborious and high-risk process.
A Gurgaon-based startup that is trying to improve the experience said Thursday it has raised a new round of funding.
Spinny raised $ 65 million in her Series C funding round, the five-year-old Indian startup said. The new round was led by General Catalyst, a Silicon Valley-based venture capital firm, while Arena Holdings, Think Investments and Feroz Dewan’s existing investors Fundamentum Partnership – backed by tech veterans Nandan Nilekani and Sanjeev Aggarwal – and Elevation Capital took part.
The round, which brings Spinny’s increase to date to over $ 120 million, valued the startup at around $ 350 million, down from around $ 150 million a year ago, one person told TechCrunch. close to the file. The startup declined to comment on the assessment.
Spinny operates a platform to facilitate the sale and purchase of used cars. One of the biggest challenges people face when buying a used car is the trust factor, and Niraj Singh, co-founder and CEO of Spinny, says the in-depth inspection and transparent of the car by the startup, buys it from the owner and then sells it. to customers addresses these concerns.
The startup says it is removing traditional middlemen from the equation, making it more affordable and reliable for customers to buy a used car. If a customer is not happy with the car they bought from Spinny, they get a full refund, he said.
Spinny began its journey as a market for used cars, but Singh said the startup has broadened its offering to become a full platform.
Used cars on the market are expected to increase 22% CAGR to 7.2 million cars sold per year. (BoFA research)
Days after one of my previous conversations with Singh, New Delhi announced a multi-month lockdown in the country as it prepared to contain the spread of the coronavirus pandemic. Singh said the pandemic had hampered Spinny’s business for a few months, but the startup has long since recovered to its pre-pandemic growth figures.
The pandemic has made many cautious about taking an Uber or Ola ride and exploring buying their own cars, which has sped up growth, Singh said. It also drastically reduced the CAC (customer acquisition cost) for Spinny, he added.
“We believe Spinny is uniquely positioned to seize this opportunity – given its compelling leadership and real market momentum. As long-time investors, we have been impressed with how Spinny is reinventing every part of the buying process – injecting confidence and security into all aspects of the customer experience, ”said Adam Valkin, General Partner of General Catalyst, in a press release.
Spinny, which was operational in five Indian cities last year, plans to expand to 15 cities by the end of 2021 and also deploy part of the new fund to expand its full-stack platform, said Singh.
“Spinny has become the most trusted used car brand in India and is fast becoming the biggest in India as well. It is heartwarming to hear customers describe the experience of buying a used car. of Spinny as being better than buying a new car. This was made possible by Niraj and the customer obsession and relentless execution of the entire Spinny team. We are privileged to be their first partners and we are delighted to overtake in this round, ”said Mukul Arora, partner at Elevation Capital, in a statement.