Every month hundreds of used cars are sold in India. But buying one through offline and traditional channels can prove to be a laborious, long and high risk process.
A Gurgaon-based startup that is trying to improve the experience said on Thursday that it had extended the new financing round.
The five-year-old Indian startup said that Spinney raised $ 65 million in the C Series funding round. The new round was led by Silicon Valley-headquartered firm General Catalyst, while Feroze Dewan’s Arena Holdings, Think Investments, and existing investors Fundamentum Partnership – backed by tech giants Nandan Nilekani and Sanjeev Aggarwal – and Elevation Partners participated.
Gol, which raises Spinney’s date to $ 120 million, valued the startup at $ 350 million, up from about $ 150 million a year earlier, a person familiar with the matter told ClearTips. The startup declined to comment on the evaluation.
Spinney operates a platform to facilitate the sale and purchase of used cars. One of the biggest challenges people face when buying a used car is the trust factor, and Spinney’s co-founder and CEO Neeraj Singh says in-depth and transparent oversight of the car’s startup, buying it from the owner and then selling it to customers. For it is addressing those concerns.
The startup says it is removing traditional middlemen from the equation, making it more affordable and reliable for customers to buy used cars. He said that if a customer is not satisfied with the car purchased from Spinney, they will get all their money back.
Spinney began its journey as a marketplace for used cars, but Singh said the startup has expanded its offerings to become a full-stack platform.
A few days after my last conversation with Singh, New Delhi announced a month-long lockout in the nation as it said the epidemic had spread. Singh said the epidemic has damaged Spinney’s business for a few months, but the startup has long recovered its pre-epidemic growth figures.
Singh said the epidemic was too cautious to take an Uber or Ola ride and attempted to buy its own car, which accelerated the increase. He said that the CAC (customer acquisition cost) for spin has also come down significantly.
“We think Spinney is uniquely positioned to tap this opportunity — given his compelling leadership and his real-market momentum. As long-term investors, we’re impressed that Spinney purchases How it is strengthening every part of the process – injecting trust and security into every aspect of the customer experience, ”Adam Catkin, General Partner at General Catalyst, said in a statement.
Spinner, operating in five Indian cities last year, planned to expand to 15 cities by the end of 2021 and also deploy part of the new fund to broaden its full-stack platform.
“Spinney has become India’s most trusted used car brand and is on its way to becoming India’s largest. Customers are happy to hear that the experience of buying a used car from Spinney is better than buying a new car. This is made possible by the customer passion and tireless execution of Neeraj and the entire spinner team. We have had the privilege of being his opening partner and are super excited to double in this round, ”said Mukul Arora, partner of Elevation Capital in a statement.
This is a developing story. More to follow later…