The round marks its entry to the unicorn club, or those startups valued at $1 billion or more.
“ADQ and Tiger Global have invested $100 million each in the company, while $50 million has come from Avenir Growth and $25 million from Feroz Dewan’s Arena Holdings,” a person familiar with the development said.
The company’s valuation of $1.5 billion pre-money has nearly doubled since it
raised $108 million from Tiger Global and others in July, sources said. The company’s post money valuation stands at $1.75 billion.
It was valued at $740 million in the previous round.
Spinny
raised $65 million in its Series C round in April from US-based General Catalyst, Elevation Capital, Alteria Capital, Think Capital, and Fundamentum Partnership at a post-money valuation of $350 million.
The latest fundraise includes a $35 million secondary sale component where some existing investors have partially or fully cashed out.
Spinny is expected to use the capital to invest in developing tech and product capabilities, for branding and to expand geographical reach, sources said.
“The company’s current annualised revenue run rate is around $300 million, growing 4x in the current calendar year,” said another person involved in the deal. “The company is expected to mirror that growth over the next 12 months, primarily led by robust traction in its older markets such as Delhi-NCR and Bengaluru,” the person added.
Spinny is present in the top 15 Indian cities and is expected to expand to 25 cities by the end of the next calendar year. “The company is contribution margin-positive in its older markets,” the person said.
Entrackr was first to report about the fundraising move on Wednesday.
A spokesperson for Spinny declined to comment.
Founded in 2015 by Niraj Singh, Mohit Gupta, and Ramanshu Mahaur, Spinny currently sells more than 3,000 used cars per month, three times what it did in January this year.
According to industry estimates, about 4.5 million used/pre-owned cars were sold in India in 2019 and the market is growing at a 12% compounded annual growth rate. For every new car sold, there are around 1.5 used cars sold in India (in the USA this ratio is around 2.3).
Spinny competes with other VC-backed firms such as Cars24, Cardekho and Droom, all of which have raised large rounds this year.
