Used car segment has been witnessing significant interest of investors since the beginning of this year. After CarDekho’s Series C round, Cars24 had closed $52 million in ongoing Series D round this month.
Now, another player – Spinny has raised around $50 million in a fresh round.
“Spinny has closed about $50 million in a Series B round led by an American investor. New investors from India, including Nandan Nilekani’s Fundamentum, has also invested in the round,” said three sources aware with details of the transaction.
Existing investors SAIF Partners and Accel Partners have also participated in the round on a pro-rata basis. The Series B round for Spinny has come after four months of the previous round. It announced about $15 million Series A round led by the above two venture capitals in May this year.
Entrackr couldn’t ascertain the name of the lead investor. According to above-mentioned sources, the deal got materialised early this month, and likely to be announced after the first half of November.
Unlike classifieds and marketplace models, Spinny follows full-stack retailer model. It buys cars and fixes glitches before pushing them to buyers through its digital channels, including popular marketplaces. The company pivoted in 2017 from the marketplace model to an inventory led play.
Sources stressed that Spinny has been valued about $150 million in the financing round. So far, the company has raised about $65 million risk capital from the investors mentioned above as well as several angels including Kunal Shah and Sandeep Tandon.
Queries sent to SAIF partners, Accel, Blume Ventures, Fundamentum and Spinny remain unanswered till the publication of this story. We will update the post as and when they respond.
Spinny was one of the late entrants in used car space that was dominated by the likes of CarDekho, Cars24 and Cartrade. Many experts used to believe that making a dent in the used car space was not easy for any new player. However, Spinny has been able to survive and seems to be a dark horse in the segment.
Spinny’s direct competitor, Truebil, has not been able to scale up. According to Entrackr sources, the Kalaari-backed firm has been looking out to consolidate with large firms including Spinny.
*Correction: The previous version of the post mentioned that Spinny raised $55 million. However, it was $50 million. We regret the error.