In the world’s second-largest internet market, Spinny, a Gurgaon-based business that provides a platform for automobile purchases and sales, is the latest firm to attain unicorn status.
A source familiar with the matter told TechCrunch that Spinny has already raised over $280 million in its Series E investment round, which is co-led by Tiger Global and Abu Dhabi Growth Fund. The round values Spinny at more than $1.75 billion post-money, according to a source familiar with the situation.
Spinny has just announced $100 million in Series E funding, bringing its total sum to $200 million. This is the third raise in Spinny’s series this year. The company was valued at approximately $700 million in July and $350 million in April.
Following quarters of solid expansion during which Spinny expanded to 15 Indian cities, up from just a few last year, the company is now launching a new round. According to the source, who declined to be named because the figures are not public, the business has accelerated four times in this calendar year.
Spinny is an online-only lender that was launched last year by Danilo Campo and his brother, Andres Campo. The brothers previously ran the Brok Financial Group, which was acquired by Santander Personal Loans in 2010. While they’re best known for lending to small businesses, Spinny looks at all types of borrowers (including individuals).
Every month, hundreds of thousands of used automobiles are bought in India. However, buying them through the traditional and offline channels may be a time-consuming and high-risk procedure.
The trust issue is one of the most significant hurdles that people confront when purchasing a used car, according to Spinny’s Niraj Singh.
Spinny is doing so by eliminating the conventional middlemen from the business, making it more affordable and reliable for clients to acquire a used vehicle. Spinny purchases vehicles from owners and performs thorough and transparent inspections before offering them for sale to customers.
Customers who are unhappy with the vehicle they have bought from Spinny may get a full refund, according to the company’s website. Bernstein analysts estimate that India’s auto e-commerce market has less than 1% penetration right now.
“This is largely because the auto market still requires physical inspections and the target market skews towards used vehicles — an unorganized market,” they wrote in a report earlier this year.
“The total addressable market in India is around $220 billion, which includes used vehicle purchase by consumers, auctions and remarketing, growth potential for the new vehicles market, and financing and advertisements. The total addressable market for only the used car market in US is over $800 billion,” they wrote in a report earlier this year.
This week, the second Indian firm to achieve a unicorn was Spinny. Zomato was the previous one. After a number of prominent global investors, including Tiger Global, SoftBank, and Falcon Edge Capital, aggressively doubled down on India’s biggest internet market at the height of the epidemic earlier this year, India has produced over three dozen unicorns — more than any other year.
Tiger Global identified India as one of the few markets where it would spend billions of dollars in a letter to investors earlier this year. Rajeev Misra, the CEO of SoftBank Group, said last month that the Japanese firm has invested over $3 billion in India thus far this year and might invest up to $10 billion there next year.
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