Hundreds of thousands of used cars are sold in India each month. But buying one through the offline and traditional channel could prove to be a painstakingly long and high-risk process.
A Gurgaon-based startup that is attempting to improve this experience said on Thursday it has raised a new financing round.
Spinny has raised $65 million in its Series C financing round, the five-year-old Indian startup said. The new round was led by Silicon Valley-headquartered venture firm General Catalyst, while existing investors Fundamentum Partnership — backed by tech veterans Nandan Nilekani and Sanjeev Aggarwal — and Elevation Partners participated in it.
The round, which brings Spinny’s to-date raise to over $120 million, valued the startup at about $350 million, up from about $150 million a year ago, a person familiar with the matter told TechCrunch. The startup declined to comment on the valuation.
Spinny operates a platform to facilitate sale and purchase of used cars. One of the biggest challenges people face in buying a used car is the trust factor, and Niraj Singh, co-founder and chief executive of Spinny, says the startup’s thorough and transparent inspection of the car, buying it from the owner, and then selling it to customers is addressing those concerns.
The startup says it is removing the traditional middlemen from the equation, thereby making it more affordable and reliable for customers to buy a used car. If a customer is not satisfied with the car they have purchased from Spinny, they get their full-refund, he said.
Spinny began its journey as a marketplace for used cars, but Singh said the startup has expanded its offerings to become a full-stack platform.
Days after one of my previous conversations with Singh, New Delhi announced a months-long lockdown in the nation as it moved to contain the spread of the pandemic. Singh said the pandemic did hurt Spinny’s business for a few months, but the startup has long recovered its pre-pandemic growth figures.
This is a developing story. More to follow…