AI-powered visual merchandising platform Spyne raises $16 million to boost expansion in the U.S.

Spyne, an AI-powered visual merchandising platform for the automotive industry, has raised $16 million in a Series A funding round led by Vertex Ventures.

The round also witnessed participation from existing investors, including Accel, Storm Ventures, and Alteria Capital. 

The startup said that the investment will fuel its growth trajectory, focusing on aggressive expansion in the U.S. and developing its next-generation AI solutions designed to transform automotive retail.

What does Spyne do?

Founded in 2020 by Sanjay Varnwal and Deepti Prasad, Spyne started as a merchandising platform serving multiple industries, including automotive, food, ecommerce, real estate, etc. 

In 2023, the startup shifted its focus entirely to automotive and launched what it claims to be India's first AI-powered visual merchandising platform. This platform enables dealerships to create studio-quality images, 360-degree spin videos, and automated marketing videos. 

Spyne said that its AI-driven solutions empower independent dealers, large dealerships, and marketplaces to create professional, high-quality visuals at scale, at one-quarter of the cost, and with unmatched speed using AI.

It aims to transform automotive retail by leveraging cutting-edge AI to enhance vehicle showcasing, streamline operations, and drive dealer profitability.

Purpose of fundraising

Spyne, which claims to have a strong presence in Indian and global markets, plans to expand its dealer base from 1,500 to over 20,000 rooftops worldwide in the coming years.

The startup will use the fresh capital to enhance its AI-powered platform, broaden its technology infrastructure, and expand into new international markets, including high-growth regions across EMEA and APAC.

Further, it is building GenAI and LLM-powered Automotive Retail Suite, which would empower small and medium-sized dealers by addressing every aspect of their retail journey.

"This investment marks a pivotal moment for Spyne as we accelerate our U.S. expansion and push the boundaries of what AI can do for automotive retail," said Sanjay Varnwal, co-founder and CEO of Spyne.

"Our vision is to make digital vehicles showcasing smarter, faster, and more immersive for dealerships worldwide. We’re thrilled to have Vertex Ventures on board, alongside the unwavering support of our existing investors Accel and Storm, as we build a category-defining Retail AI platform for the industry," Varnwal added.

Building a U.S. business development team

Spyne said it is establishing a dedicated U.S. business development team, led by an experienced country head, alongside a team of account executives and customer success professionals.

The startup believes that the strategic move will further build its brand presence in the country and foster deeper connections with dealerships, OEMs, and marketplaces.

"At Vertex, we have had a longstanding thesis around specialized AI Applications solving vertical use cases. Spyne has proven this in solving a fundamental pain point for auto dealerships leveraging AI to optimize vehicle merchandising and retail operations at scale," said Piyush Kharbanda, General Partner at Vertex Ventures SEAI.