Spinny, an online used car retailing platform, has raised $ 43.7 million in a Series B funding round led by The Fundamentum Partnership, a growth-capital fund for mid-stage technology companies in India backed by Nandan Nilekani and Sanjeev Aggarwal.
The round also counts new investors, U.S.-based General Catalyst Partners, KB Financial Group from Korea and existing investors Accel, SAIF Partners and Alteria Capital as co-investors.
The funds would be used to invest in technology, strengthen business teams, enhance customer experience and, expand to newer cities, said the company.
Spinny currently has presence across four cities in India and it sold close to 10,000 cars through its platform.
The used car segment in India is on a fast growth trajectory owing to the rise in first time car buyers looking for quality yet affordable four wheelers and at the same time existing car owners reducing their holding time from 6-7 years to 3-4 years, upgrading to newer models.
According to industry reports, for every new car sold in India, approximately 1.3 used cars are sold. Currently, the Indian pre-owned car market stands at about 4.3 million units sold annually, growing at about 14% CAGR. However, despite the soaring demand, only about 18% of the market is organised with most of the buying and selling of cars happening through unorganised means.