Pre-owned cars platform Spinny has raised $43.7 million (around 316.46 crore at current exchange rates) in its Series B funding led by the Fundamentum Partnership, which provides growth capital for mid-stage technology companies in India.
Existing investors Accel, SAIF Partners, and Alteria Capital also participated in the round. Others that contributed to the round include the US-based General Catalyst Partners, Korea’s KB Financial Group, Spinny said in a statement.
Fundamentum Partnership is backed by Nandan Nilekani and Sanjeev Aggarwal. As part of the transaction, firm partner Ashish Kumar will join Spinny’s board.
Gurugram-based Spinny said it will use the funds to invest in its technological infrastructure, strengthen its business teams and enhance the customer experience apart from expanding to more cities in the country.
“With the increase in disposable income levels and evolving consumer demand, we want to be the market leader in the organized used car market segment,” Niraj Singh, co-founder and CEO at Spinny, said.
The funding comes after reports in November last year suggested that at least five investors – including two existing ones – were looking to participate in a $50 million (around Rs 357 crore) funding round in Spinny. Some of the investors named in the reports included Fundamentum, General Catalyst, and Norwest Venture Partners.
Separately, Nilekani said he was confident of Fundamentum’s investment in Spinny because of its full-stack approach to solving operational friction in the used car retailing business.
Spinny, operated by ValueDrive Technologies Pvt. Ltd, was founded in 2015 by Singh, Mohit Gupta, and Ramanshu Mahuar. The startup says its online-to-offline model allows customers to discover cars on its website and make their final purchase at a designated car hub. The company also takes care of the associated paperwork for a customer, including registration certificate transfers and financing options.
Some of Spinny’s competitors include CarDekho, Truebil, and Droom. In May last year, it raised Rs 92 crore (around $13.2 million) in a Series A funding round led by SAIF Partners and Accel. Alteria Capital had also participated in that round. TaxiForSure co-founder Raghunandan G and True North partner Haresh Chawla had also participated.