Source: entrackr
The Gurugram, Used vehicle platform Spinny has secured $35–40 million in fresh funding from WestBridge Capital, bringing its ongoing funding round to approximately $170 million, according to two sources knowledgeable about the situation.
In May, it was reported that Accel Leaders Fund, a US-based investor, was leading a $131 million funding round for Spinny, with other existing investors including Elevation Capital, Think Investments, and Tiger Global participating as well.
“WestBridge has joined the round with $35–40 million in primary capital, which will push the total fundraise to around $170 million,” said one of the sources, requesting to remain unnamed.
Regardless of the new funding, Spinny’s valuation remained in the same range – between $1.5 billion and $1.7 billion. The Gurugram-based startup was designated a unicorn in July 2021, with a valuation of $1.8 billion
Supported by Significant Investors
To date, Spinny has secured more than $500 million from prominent investors like Tiger Global, Elevation Capital, General Catalyst, and Fundamentum. Furthermore, in December 2021, Spinny appointed cricket icon Sachin Tendulkar as a strategic investor and a brand ambassador.
Spinny’s Business Model
Spinny enables consumers to buy and sell used automobiles, often high-quality vehicles. Spinny employs a full-stack model, which involves the company executing the entire transaction: vehicle inspection, repairs, paperwork, and financing. Spinny’s full-stack model allows consumers to experience a worry-free & reliable process for all transaction types.
The company is currently reporting around 11,000 cars per month, through both direct retail and B2B auction channels.
Recently Spinny has made two major moves to enhance its business. The first is purchasing Autocar India, a popular auto content platform, and the second is launching its own non-banking financial company (NBFC) to directly offer loans and other financial services to its customers.
Financial Achievement
Spinny has done well on its financial achievements in the lapsed year and for the financial year, ending March 2024, it has increased revenue from operations from ₹3,259, to ₹3,725 crore. The company also reduced the net loss by 28% down to ₹590 crore. So Spinny is moving towards profitability as it executes its scale up.
What’s Next
Spinny intends to upgrade its technology, expand its presence into additional cities, and bolster its lending capabilities with the fresh capital. The company is also focusing on content and customer experience via its recent acquisitions.
So far, Spinny and WestBridge haven’t publicly commented on the deal.
WestBridge Capital has injected $35–40 million into Spinny, bringing the total funding round to around $170 million. The new money will help Spinny increase its technology, scale up, and modernize its lending business, but its valuation remains modestly unchanged at $1.5–1.7 billion.
