The fundraise, a mix of primary capital ($105 million) and secondary share sale ($3 million), values the Gurugram-based startup at $750-800 million, a senior company official said. Tiger and Avenir Growth invested $75 million and $20 million, respectively, while the others brought in the rest. A few angels and early backers have exited the firm.
In April, Spinny
raised $65 million in a Series C round from US-based General Catalyst, Elevation Capital, Alteria Capital, Think Capital and Fundamentum Partnership at a post-money valuation of $350 million.
The latest round takes the overall funds raised by Spinny to $230 million.
“We are looking to use the capital to expand to seven more cities, taking our network to the Top 15 cities of the country,” Niraj Singh, founder and chief executive officer at Spinny, told ET in an exclusive interaction. “By December, we will be present in 20 cities.”
The company will also use the capital for improving customer experience on the platform and building teams across functions. “Given the heightened investor interest, we might look at raising capital from long-term partners in the immediate future, taking the valuation beyond $1 billion,” Singh said.
Founded in 2015 by IIT Delhi alumnus Singh, Flipkart’s former director Mohit Gupta and former Adobe executive Ramanshu Mathur, Spinny currently sells around 2,000 used cars per month. That’s twice of what it sold in January this year. “By December, we aim to sell 4,000-5,000 cars per month, taking our annual revenue run rate to $300-320 million,” said Singh.
The company’s current revenue run rate is around $150 million.
Spinny, at present, has 15 car hubs operating across eight cities — Delhi NCR, Bengaluru, Mumbai, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad.
According to Industry estimates, about 4.5 million used or pre-owned cars were sold in India in 2019 and the market is growing at a compounded annual growth rate of 12%. For every new car, there are around 1.5 used cars sold in India (in the US, this ratio is around 2.3).