Spinny lays off around 300 employees as it merges Truebil and Max platforms

Used car retailer Spinny has laid off nearly 300 employees as the company merged Truebil and Max platforms into the main platform.

The objective is to have cleaner and more focussed execution going forward and offering everything to the customers on the same platform and this is the reason behind the layoffs, according to the company.  

Spinny acquired Truebil for an undisclosed sum in August 2020.

The move will impact around 4.5% of the total workforce which is over 6,000 currently, as per Entrackr’s sources.

Spinny will be offering all three categories Assured, Budget and Max and Truebil, Max will be redirected to the main platform.

“We have witnessed a sharp uptick in demand for reliable, budget friendly cars as most people have resumed work from the office. By splitting our inventory of cars across different brand platforms, we were sometimes unable to offer enough options to such customers. With this consolidation, we should be able to meet the needs of these customers well,” the company said in a statement.

Besides three-month severance pay, the company has accelerated ESOPs vesting of impacted employees and they can keep their assets as a support gesture.

This is the first layoffs in the Gurugram-based company while its peers including CarDekho and Cars24 have already fired hundreds of employees in the past couple of years. Last year, Cars24 laid off 600 employees whereas CarDekho also gave pink slips to several employees in 2022.

Spinny reported revenue of Rs 3,000 crore according to its unaudited financial report reviewed by Entrackr.

The company turned unicorn after raising around Rs 1,849 crore or $248 million in its Series E round in November 2021.  Entrackr exclusively reported the development. It has raised over $500 million since its inception.