Spinny raises $40 million from WestBridge in extended funding round

Niraj Singh, co-founder and CEO of Spinny

Used car marketplace unicorn Spinny has extended its ongoing $131 million funding round with fresh backing from WestBridge Capital, which is investing close to $40 million, according to people familiar with the matter. This would take the total size of the round to approximately $170 million.

The funding comes at a flat valuation of about $1.7 billion.

Moneycontrol had previously reported in March that Spinny had raised $131 million at a flat valuation in a round led by US-based Accel Leaders Fund. Existing investors including Elevation Capital, Think Investments, Tiger Global, and Fundamentum Partnership had also participated.

Entrackr was the first to report the development.

This marks the largest funding round in India’s used-car marketplace segment since 2021, when startups including Spinny, CarDekho, Cars24, and Droom raised massive rounds that pushed their valuations beyond the $1 billion mark.

Spinny became a unicorn in December 2021 after raising $283 million from investors including Abu Dhabi’s ADQ, Tiger Global, and Avenir Growth, valuing the company at $1.8 billion.

Spinny and WestBridge did not reply to Moneycontrol's queries.

ALSO READ: Used car marketplace Spinny raises $131 million in fresh funding led by Accel Leaders Fund

So far, Spinny has raised a total of $521 million across 13 rounds and was last valued at $1.67 billion, excluding the latest investment, according to market intelligence platform Tracxn.

In recent quarters, used-car marketplaces have faced hurdles in scaling up amid a tighter funding environment and stiff competition from the fragmented unorganised sector. While CarDekho has exited the space, others like Cars24 and Spinny are focusing on expanding service offerings and exploring new revenue streams.

In FY24, Spinny’s revenue from operations rose 14 percent to Rs 3,725 crore, up from Rs 3,260 crore the previous year. The growth came after the company merged its budget and luxury car offerings, Truebil and Spinny Max. Spinny also laid off around 300 employees and reduced marketing spends during the year, helping bring down losses by 28 percent year-on-year to Rs 590 crore.

The company recently acquired Haymarket SAC’s automotive media titles in India, including Autocar India, Autocar Professional, and What Car? India.

According to the latest Indian Blue Book report by car&bike and Das WeltAuto by Volkswagen, 5.1 million used cars were sold in India in FY23, with the market pegged at $34 billion. By FY28, the segment is projected to grow to $73 billion, with 10.9 million used cars expected to be sold.