Indian Spinny raises $ 43.7 million to expand online used car platform – TechCrunch

Spinny, an online used car platform, has secured $ 43.7 million from a cohort of influential investors in a new round of funding as it seeks to expand to more Indian cities.

The Series B funding round for the Gurgaon-based startup was led by the Fundamentum Partnership, the private equity fund backed by tech veterans Nandan Nilekani and Sanjeev Aggarwal. US-based General Catalyst Partners, Korea-based KB Financial Group, and existing investors Accel, SAIF Partners and Alteria Capital also participated in the round.

The four-year-old startup has raised around $ 57 million to date, and according to someone familiar with the matter, the new round has given it a post-money valuation of around $ 150 million.

Spinny operates a platform to facilitate the sale and purchase of used cars. Niraj Singh, co-founder and CEO of the startup, told TechCrunch in an interview that Spinny brings the confidence factor that people look for when buying a car.

“Most of these people are under 35. They have aspirations and want better cars. But it is difficult for them to find a trustworthy place and to deal with agents, ”he said.

The four-year-old Gurgaon-based startup solves this problem by inspecting and buying the cars, then selling them itself.

“Since there is no middleman, we are able to sell the cars at more affordable prices and we offer a full five-day, no-questions-asked refund if anyone is not happy with its purchase, “he said. “On top of that, we also provide a one year warranty on these cars.”

Spinny operates in four cities in India today and has sold nearly 10,000 cars. Until 2017, the startup acted as a marketplace for the sale and purchase of cars, essentially serving as an SEO platform. “Then we pivoted because we wanted to control the whole supply chain,” he said.

Nandan Nilekani, co-founder and chairman of Fundamentum, said the fund was impressed with Spinny’s “full stack business” which is building competitive differentiation as it evolves.

“This fits into Fundamentum’s thesis of supporting long-term oriented entrepreneurs to solve complex business problems using technology and who aspire to build a large-scale business and last,” a- he declared.

On Spinny’s website, people can find the car they want to buy and then inspect and test drive it from the startup’s physical hubs. Spinny currently has nine hubs in India, something it plans to expand to 20 by the end of the year as it expands to more cities across the country.

It competes with Cars24 and CarDekho, both of which are Sequoia Capital investors, as well as Droom, which has raised more than $ 130 million, and the Olx market owned by Naspers.