• Spinny has raised $131 million in a funding round led by Accel Leaders Fund, maintaining a flat valuation amid a challenging investment climate.
  • The company reported a 14% increase in revenue in FY24 but implemented cost-cutting measures, including layoffs, to manage losses.
  • India's used-car market is projected to grow to $73 billion by FY28, highlighting continued industry expansion despite market challenges.

Used-car marketplace Spinny has secured $131 million in a fresh funding round led by US-based Accel Leaders Fund, sources familiar with the development said. Existing investors, including Elevation Capital, Think Investments, Tiger Global, and Fundamentum Partnership, also participated.

Regulatory filings accessed via TheKredible indicate that Accel Leaders Fund contributed around $49 million in the first tranche, while Fundamentum invested $3 million. The company aims to raise up to $110 million in primary capital, with the remainder coming from secondary share sales.

This is the largest funding round for a used-car marketplace since 2021, a year that saw significant investments in the sector. During that period, Spinny, alongside competitors such as CarDekho, Cars24, and Droom, raised large sums, pushing their valuations beyond the $1 billion mark.

Spinny became a unicorn in December 2021 after securing $283 million from investors, including Abu Dhabi’s ADQ and existing backers like Tiger Global and Avenir Growth, reaching a valuation of $1.8 billion.

However, used-car startups have faced challenges in scaling due to funding constraints and competition from unorganized market players. While CarDekho has exited the space, Spinny and Cars24 have explored alternative revenue streams and expanded their services.

“In FY24, Spinny’s revenue from operations increased 14 percent to ₹3,725 crore from ₹3,260 crore the previous year,” according to company filings.

The company recently merged its budget and luxury car divisions—Truebil and Spinny Max—while also implementing cost-cutting measures, including laying off around 300 employees and reducing marketing expenses. These actions contributed to a 28 percent year-on-year reduction in losses, bringing them down to ₹590 crore.

Additionally, Spinny has expanded its presence in the automotive media space by acquiring Haymarket SAC’s India-based automotive titles, including Autocar India, Autocar Professional, and What Car? India.

The used-car market in India remains a growing sector. According to the latest Indian Blue Book (IBB) report by car&bike and Das WeltAuto by Volkswagen, 51 lakh used cars were sold in FY23, with the industry valued at $34 billion. The market is projected to grow to $73 billion by FY28, with sales expected to reach 1.09 crore used cars.

Edited by Harshajit Sarmah