Gurugram-based startup Spinny recently raised a new round of funding worth $108 million led by Tiger Global. The fundraise is a great vote of confidence for the startup that provides second-hand car purchasing services to customers.
In a recent conversation with YourStory’s Priya Sheth for the Daily Dispatch series, Founder and CEO of Spinny, Niraj Singh shared that while there is huge demand, there is also stress on the supply side, so the sellers are able to dictate the narrative and charge a good premium.
He said the last four to five months had seen them doubling their business, and the company is looking at a 4x growth by the end of the year. The company’s analysed run rate is expected to be more than $320-330 million by the end of FY22. Currently present in eight cities in the country, Spinny aims to add 7 more to its list in the next couple of months.
“By the end of this year, we hope to be present in the top 20 cities of the country,” said Niraj.
Spinny preowned cars sold to a family
Explaining their process, Niraj said sellers merely have to submit their contact details on their platform and schedule a physical inspection for the car. A team then provides doorstep inspection of the car, following which the seller gets a final offer. Payment is usually done immediately after the customer confirms.
“Because of our model, we have been able to offer highly competitive prices also,” said Niraj.
The company is expanding its geographical coverage to more cities, and plan to double down on capabilities that will help deliver quality and experiences.
According to Niraj, diversification is not an immediate concern, and Spinny’s current focus is on solving concerns around quality, transparency and accountability. “Once we have a certain command, scale and geographical coverage, we will start adding more offerings to our portfolio,” said Niraj.
He shared that the company does not burn money on transaction. Whatever cash they earn goes into developing processes/products, building infrastructure, adding more people to the team, going into new markets, etc. “Burn is basically an investment for further growth and capability building”.
Niraj also shared that Spinny is increasing its horizontal coverage in terms of the cars on offer. The cars on the platform currently are within the price range of Rs 4 lakh to Rs 8 lakh, but there are plans to expand the range. Spinny will also soon be adding two new segments – luxury and budget.
On market demand, Niraj said Ford EcoSport, Maruti Suzuki Swift, etc. seeing maximum demand. Delhi being their oldest market contributes the most, followed by Bengaluru. “Growth is really solid in all our markets,” added an optimistic Niraj.
