Gurgaon-based Spinny receives fresh funding of $65 million from General Catalyst

• The startup spinny, a used car platform has acquired funding of $65 million in a Series D funding round from General Catalyst.
• The startup is growing at a steady growth rate of 15-16% month-on-month and manages to sell around 1500 cars
• The fresh funding will be used for improving customer experience, expanding into new markets, strengthening technology and product capabilities, launching new business categories, and building teams across functions.

Gurgaon-based used startup Spinny, a used car platform has announced that it has raised fresh funding of $65 million in a Series D funding round led by Silicon Valley-based venture capital firm General Catalyst and the fresh funding the startup has reached $350 million valuations.

In the funding round new investors Feroz Dewan's Arena Holdings and Think Investments, and existing backers Elevation Capital and Fundamentum Partnership, also participated that saw some early-stage investors sell stock worth $15 million. The startup has raised more than $120 million in funding so far, including the latest round.

Set up in 2015 by Niraj Singh, Mohit Gupta, Ramanshu Mahur, and Ganesh Pawar with an aims to provide a platform where the targeted customers could buy, refurbish and sell used cars. It’s a digital platform car-buying platform enabling trustworthy and hassle-free transactions. The platform has impressed everyone with the constant increase in the sales of cars. The company sells around 1500 cars every month and is growing at a steady growth rate of 15-16% month-on-month, founder and chief executive officer Niraj Singh told.

The fresh funding will be used strategically for entering into new territory, improving the experience of the customers, strengthening the technology, expanding the product portfolio, launching new business categories, and building teams across functions.

“There was a lot more capital available, but we wanted limited dilution in this round because our burn is very limited. We don't have a runaway problem. It was just that we wanted to add an extra layer of security and the ability to experiment more,” Singh said.

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India’s auto sector faced its worst downturn in over a decade as a slowdown, coupled with a pandemic, wiped out sales. Even when the India auto affected a lot of the platform somehow Spinny sold about 6,000 used cars in the last calendar year.

The used car market in India is huge and ripe for reinvention. We believe Spinny is uniquely positioned to tap this opportunity, given their compelling leadership and their real market momentum,” said Adam Valkin, general partner at General Catalyst, an early backer of Stripe Inc. Airbnb Inc., and Snap Inc. in the US.

The pre-owned vehicle segment, which accounts for 18% of the market share, registered estimated sales of 4.4 million units in FY20, according to data collated.

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