Hundreds of 1000’s of used cars are bought in India every month. But shopping for one by the offline and conventional channel might show to be a painstakingly lengthy and high-risk course of.
A Gurgaon-based startup that’s trying to enhance this expertise mentioned on Thursday it has raised a brand new financing spherical.
Spinny has raised $65 million in its Series C financing spherical, the five-year-old Indian startup mentioned. The new spherical was led by Silicon Valley-headquartered enterprise agency General Catalyst, whereas Feroz Dewan’s Arena Holdings, Think Investments, and current traders Fundamentum Partnership — backed by tech veterans Nandan Nilekani and Sanjeev Aggarwal — and Elevation Partners participated in it.
The spherical, which brings Spinny’s to-date elevate to over $120 million, valued the startup at about $350 million, up from about $150 million a 12 months in the past, an individual aware of the matter instructed TechCrunch. The startup declined to touch upon the valuation.
Spinny operates a platform to facilitate sale and buy of used cars. One of the largest challenges individuals face in shopping for a used automobile is the belief issue, and Niraj Singh, co-founder and chief govt of Spinny, says the startup’s thorough and clear inspection of the automobile, shopping for it from the proprietor, after which selling it to prospects is addressing these considerations.
The startup says it’s eradicating the standard middlemen from the equation, thereby making it extra reasonably priced and dependable for prospects to purchase a used automobile. If a buyer will not be happy with the automobile that they’ve bought from Spinny, they get their full-refund, he mentioned.
Spinny started its journey as a market for used cars, however Singh mentioned the startup has expanded its choices to turn out to be a full-stack platform.
Days after one in every of my earlier conversations with Singh, New Delhi introduced a months-long lockdown within the nation because it moved to comprise the unfold of the pandemic. Singh mentioned the pandemic did damage Spinny’s enterprise for a couple of months, however the startup has lengthy recovered its pre-pandemic progress figures.
The pandemic made many cautious about taking an Uber or Ola experience, and discover shopping for their very own cars, which accelerated the expansion, mentioned Singh. It additionally considerably lowered the CAC (buyer acquisition price) for Spinny, he added.
“We believe Spinny is uniquely positioned to tap this opportunity–given their compelling leadership and their real market momentum. As long time investors, we’ve been impressed by how Spinny is reinventing every part of the buying process – injecting trust and safety into every aspect of the customer experience,” mentioned Adam Valkin, General Partner at General Catalyst, in an announcement.
Spinny, which was operational in 5 Indian cities final 12 months, plans to expand to 15 cities by the tip of 2021, and likewise deploy a part of the contemporary fund to broaden its full-stack platform, mentioned Singh.
“Spinny has become India’s most trusted used car brand and is on its way to becoming India’s largest as well. It’s heartening to hear customers describe the experience of buying a used car from Spinny being better than that of buying a new car. This has been made possible because of Niraj and the entire Spinny team’s customer obsession and relentless execution. We are privileged to be their early partners and super excited to double down in this round,” mentioned Mukul Arora, Partner at Elevation Capital, in an announcement.
This is a creating story. More to observe later…