Spinny in Talks to Raise $100M Amid Improved Financial Performance

Deal News | Jan 30, 2025 | Aim Group

India-based used-car marketplace Spinny is reportedly in discussions to secure $100 million from its current investors in an upcoming funding round. This move comes after a landmark Series E funding in 2022, which raised $285 million and valued the company at $1.7 billion. Notable investors such as Tiger Global, General Catalyst, and Abu Dhabi Growth Fund are expected to contribute. Spinny's financial health shows signs of improvement, with a 28% drop in losses for FY23-24, attributed to enhanced financial discipline. Known for its b-to-c model, Spinny is shifting to include b-to-b auctions, although its profit margins may face pressure due to an increase in India's GST on used cars from 12% to 18%. The company's journey from a c-to-c business to a transaction-based model underlines significant strategic pivots since its inception in 2015.

Sectors

  • Automotive
  • Financial Services
  • E-commerce

Geography

  • India – Spinny is an India-based company, and the article discusses its operations and funding activities within the Indian market context.
  • United States – The article mentions the investment being sought in USD and involves U.S.-based investors like Tiger Global and General Catalyst.

Industry

  • Automotive – The article focuses on Spinny, a company operating within the used-car marketplace, highlighting its role in the automotive sector.
  • Financial Services – The discussion of funding rounds and investor participation positions the article within the financial services industry, emphasizing investment activities.
  • E-commerce – Spinny's business model of buying and selling used cars online aligns it with the e-commerce sector.

Financials

  • $100 million – The amount Spinny aims to raise in the new funding round from existing investors.
  • $1.7 billion – The post-money valuation of Spinny after its Series E funding round in 2022.
  • $285 million – The amount raised by Spinny in its Series E funding round.
  • $68.1 million – The reported losses for Spinny in the FY23-24, with a 28% reduction year on year.

Participants

NameRoleTypeDescription
SpinnyTarget CompanyCompanyAn Indian used-car marketplace looking to raise funds.
Tiger GlobalInvestorCompanyAn existing investor participating in Spinny's funding round.
General CatalystInvestorCompanyA U.S.-based investor likely to participate in Spinny's latest funding round.
Accel PartnersInvestorCompanyAn existing investor expected to join the new funding round.
Abu Dhabi Growth FundInvestorCompanyAn investor possibly involving in the forthcoming investment round.
Elevation CapitalInvestorCompanyAn existing investor likely to contribute to the upcoming funding.
Niraj SinghCo-FounderPeopleOne of the founders of Spinny.
Mohit GuptaCo-FounderPeopleOne of the founders of Spinny.
Ramanshu MahaurCo-FounderPeopleOne of the founders of Spinny.