India used car marketplace raises $13m Series A

The deal also included INR200 million ($2.9 million) in venture debt provided by Alteria Capital, according to media reports linked from Spinny’s Twitter feed, while Haresh Chawla, a partner at True North, contributed to the round in his personal capacity. Anand Daniel, a partner at Accel, and Mukul Aora, a managing director at SAIF, will join the company’s board.

Spinny launched in 2015 as an auction platform but currently operates on a dealership model to ensure that cars are thoroughly inspected before sale. Customers can select a car online and visit one of the company’s three hubs to test drive. Spinny plans to use the new capital to open at least five more hubs by the end of the year, while expanding the team and improving its inventory assessment capabilities.

India’s used car market is currently estimated to be worth around $25 billion and is expected to reach more than $60 billion over the next five years, but it is largely unorganized, with a lack of transparency and guarantees for quality. Online players like Spinny hope to attract customers through a standardized shopping process.

The company has several PE-backed competitors, including CarTrade, which is supported by the likes of Temasek Holdings and Warburg Pincus, and Truebil, which is backed by Shunwei Capital and Kalaari Capital.

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• Topics
• South Asia
• Consumer
• Technology
• Expansion
• India
• Accel Partners
• SAIF Partners
• Blume Ventures
• TMT
• automobiles