Used car buying and selling platform Spinny is raising about $15 million financing round led by Accel Partners and SAIF Partners. According to the sources, Accel will put about $6 million while SAIF would inject about $5 million in three years old venture.
Remaining $4 million would come through a mix of debt and equity funding from existing investor Blume Ventures.
“Besides venture round, the company is also raising a debt round in the range of $2-3 million,” added sources on condition of anonymity. The round will also see the participation of two new prominent angels.
Entrackr couldn’t ascertain the name of angel investors. Earlier this month, a Mint report mentioned that Accel and Sequoia Capital are leading the round. However, our sources emphasised that SAIF Partners, not Sequoia Capital is participating in the round.
Entrackr queries sent to Spinny and SAIF Partners did not elicit any response till the publication of this post. We will update the story as responses come in.
Sequoia had recently invested about $50 million in used car buying platform Cars24. Sequoia also has CarDekho in its portfolio. The VC firm has been investing in the Jaipur-based company since 2013. It led Series A and participated in series B round of the auto classifieds.
CarDekho also had raised about $75 million in fresh capital from new as well as existing investors.
Unlike classifieds and marketplace models, Spinny buys cars and fixes glitches before pushing them to buyers through its digital channels including popular marketplaces. To make a second-hand car buying trustworthy, the Gurugram-base Spinny pivoted last year from marketplace model to become inventory led full stack retailer.
Last year, Spinny raised $1 million in a seed round led by Blume Ventures and angels including Freecharge co-founders – Sandeep Tandon and Kunal Shah. Till January this year, it claimed to have sold out over 3,000 cars including both from initial C2C managed marketplace and current retailing models.
Spinny competes with Shunwei Capital-backed Truebil, Mahindra First Choice Wheels, Maruti True Value and remotely with Cars24, carDekho, and CarTrade.
Spinny doesn’t see horizontal and vertical classifieds as competition, rather it complements them. Indian used car market will have a size of about $60 billion by 2022 and the Niraj Singh-led company eyes to have 5 per cent of it.