Six months ago Entrackr had reported how Spinny was raising around $15 million Series A round from SAIF Partners and Accel Partners instead of Sequoia Capital and Accel.
The latest reports confirm this detailing that SAIF has led a $13.2 million (Rs 92 crore) Series A round in Spinny along with Accel. This is a mix of equity and venture debt round where Alteria Capital, Simile Ventures, and Blume Ventures are also participating.
As for the two new angel investors, Haresh Chawla, a partner in True North, a private equity firm and Raghunandan G, co-founder of TaxiForSure have made their contributions in the round.
With this Anand Daniel, a Partner with Accel, and Mukul Arora, MD at SAIF Partners will be joining the board of the company.
For Spinny, the aim with these funds is to expand geographically within the country. For the NCR (Gurugram) based company, the next target is to add three more hubs in the region and enter into Bengaluru.
The company runs on a business model where it buys used cars from individuals and commercial retail chains, repairs them and then sells them on its platform as well as on other used car marketplaces with a 1-year warranty and five-day money back guarantee.
Spinny pivoted to this model after being a used car marketplace for a while when it realised that the customer was insecure while buying used cars due to the risk attached. It decided to solve this pain point to ensure stable growth to gain 5% share in the industry that is valued at $25 billion now and has a potential to reach $60 billion in next 5 years.
So far the Niraj Singh led company has raised $14-14.5 million including $1 million seed round by Blume Ventures, Sandeep Tandon, and Kunal Shah in 2017. If we look at earlier reports, there is still a possibility of more tranches coming in.
The valuation after this $13.2 million tranche is expected to reach around $30 million, as per the company’s press release.