Spinny, the Gurgaon-based startup that operates a platform to facilitate buying and selling of used cars, is the latest firm to become a unicorn in the world’s second largest internet market.
small garden A source familiar with the matter told Nerdshala it has raised more than $280 million in its Series E financing round. The round, co-led by Tiger Global and the Abu Dhabi Growth Fund, is valued at over $1.75 billion, the source said.
This is the third funding round that Spinny has raised this year. The startup was valued at around $700 million in July this year and $350 million in April.
The new round follows quarters of strong growth, with Spinny expanding to 15 Indian cities, compared to less than half a dozen last year. The startup has grown its business four-fold in the current calendar year, said the source, requesting anonymity, adding that the figures are not public.
Spinney, which counts Elevation Capital and Accel among its current backers, did not immediately respond to a request for comment.
Hundreds of thousands of used cars are sold every month in India. But buying them offline and through traditional channels can prove to be a laboriously long and high-risk process.
Spinny co-founder and chief executive Neeraj Singh told Nerdshala in an interview earlier this year that one of the biggest challenges people face in buying a used car is the trust factor.
Spinny is addressing this by removing traditional middlemen from the equation, making it more affordable and reliable for customers to buy a used car. The startup buys cars from owners, conducts thorough and transparent inspections and then makes it available for customers to buy.
The startup says on the website that if a customer is not satisfied with the car they buy from Spinny, they get a full refund.
The growth potential is huge for Spinny and few other startups working in this area. According to Bernstein analysts, the auto e-commerce market currently has less than 1% penetration in India.
“This is largely because the auto market still requires physical inspections and the target market leans toward used vehicles – an unorganized market,” he wrote in a report earlier this year.
“The total addressable market in India is approximately $220 billion, which includes consumer used vehicle purchases, auctions and remarketing, growth potential for the new vehicle market, and funding and advertising. For the US only used car market The total addressable market is over $800 billion,” he wrote in a report earlier this year.
Spinny is the second Indian startup to become a unicorn this week. After several high-profile global investors including Tiger Global, SoftBank and Falcon Edge Capital began doubling down on the world’s second largest internet market, India produced more than three dozen unicorns this year – more than all other years. In more. year at the height of the devastating pandemic.
In a letter to shareholders earlier this year, Tiger Global identified India as one of the few markets where it was planning to deploy billions of dollars. SoftBank Group chief executive Rajeev Mishra said earlier this month that the Japanese firm has invested more than $3 billion in India this year and may invest up to $10 billion in the country next year.