Pre-owned cars selling platform, Spinny has raised $1 Million in the seed funding round. The funding round was led by Blume Ventures, Indian Angel Network and FreeCharge co-founders Kunal Shah and Sandeep Tandon.
The Gurgaon-Based startup was found in 2015 by IIT Delhi alumni Niraj Singh and Ramanshu Mahaur along with former Flipkart executives Ganesh Pawar and Mohit Gupta. Spinny is a technology driven used cars marketplace in India. Ushering new car of transparency and convenience in used cars transactions powered by Spinny Inspection, Spinny Star Rating and Spinny Star Pricing.
Founder and CEO, Spinny, Niraj Singh said “Using data from real transactions, we can best predict the selling price of a car as per its true condition and can make a quick offer. This reduces the time to close the deal. It also ends uncertainty and hassle usually associated with options to sell on the open market.”
The startup operates through a network of retail hubs where a customer can review the car before buying. Spinny, which currently has two garages one in Gurugram and other in West Delhi. The startup keeps the inventory (of cars) for a maximum period of 35 days, beyond which it disposes the asset to one of its partner dealers.
The startup claims that it has strategically chosen Delhi-NCR as its target market as it accounts for 18% of India’s used cars market.
Arpit Agarwal, the principal at Blume Ventures, said: “Despite the presence of vertical-focussed classifieds, the needs of the market are largely unfulfilled as the issue of trust still remains. We found Spinny to be the only company willing to get their hands dirty in solving the problem from the ground up.”
Spinny has to face some heavy competition in same category startups like Truebil, Droom, CarDekho, Carwale and CarTrade in addition to horizontal people-to-people platforms such as OLX and Quikr which have already flagged their poles at the market.
The automobile market in India has clocked at $125 Billion. The used car market is estimated to be valued at about $15 billion and is growing at 20-22% CAGR. More than 40 lakh cars are exchanged every year. It is expected to grow at a rate of about 10% to a whopping $225 Bn by 2020.