Tiger Global, Avenir lead $108m round for India's Spinny
Spinny, an Indian online used car marketplace, has raised $108 million in Series D funding led by Tiger Global Management and US-based investor Avenir Growth.
The round comprises $105 million in new equity, with an additional $3 million used to take out some early-stage investors. Tiger Global and Avenir contributed $75 million and $20 million, respectively, with the balance coming from the likes of General Catalyst, FJ Labs, Kaiser Foundation Hospitals, and Kaiser Permanente Group Trust.
Founded in 2015, Spinny is modeled on US player Carvana. It has 16 hubs across eight cities, enabling customers to view and test drive vehicles they identify online before making a final purchasing decision. The company claims to conduct rigorous checks on vehicles, and each sale includes a five-day no-questions-asked money-back guarantee.
Monthly sales have risen from 700 units in January 2020 to 1,300 in January 2021 and 2,000 in June of this year. The goal is to reach an average of 4,000 by December 2021.
The new capital will go towards improving customer experience, strengthening technology and product capabilities, deepening market penetration, and recruitment. Spinny plans to enter seven new cities over the next two months. It currently operates in the Delhi National Capital Region, Bengaluru, Hyderabad, Pune, Mumbai, Kolkata, Chennai, and Ahmedabad.
Spinny has raised $230 million to date, starting with a seed round led by Blume Ventures in 2017 and then a $13.7 million Series A from Elevation Capital and Accel Partners. Several months after its $43.7 million Series B in 2019 – led by Fundamentum – the company acquired local rival Truebil. A Series C of $65 million, with General Catalyst in the lead, closed in April of this year.
Other investment activity in India’s used car space includes a $200 million Series E – at a valuation of more than $1 billion – for Cars24 last November. There are several more VC-backed competitors, such as CarTrade, CarDekho, Droom, and Mahindra First Choice Wheels.
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