Spinny Valuation, Funding & Shareholders Breakdown – 2024

In the last decade, the usage of second-hand cars or pre-used cars has become a new norm. Reason? Well, there are many. Buying a pre-used car not only offers value for money but also you are less worried about minor wear and tears! Seeing such sought demands of customers, numerous startups emerged that offered the buying & selling of pre-owned cars. 

One such famous company is Spinny!

It was founded in 2015 and soon, it became one of the top companies offering pre-used cars. Spinny valuation became the talk of the town! How and Why? You will get to know all about it in this article.

Let’s begin!

Spinny Valuation

According to Tracxn, Spinny valuation is $1.61 billion or Rs.13,202 crore as on September 2022. Now you must be wondering how its valuation reached this high. It’s through its breakthrough business model that won the trust of the public as well as the investors. 

This B2C Company for pre-used car buying & selling works in the following ways-

• Spinny lists the cars (to be sold) on their website.
• Information that is mentioned- Car’s model names, years of launch, expected prices, etc.
• It allows sellers to schedule an inspection for selling their cars.
• Buyers go through the platform’s website to select the cars.
• Thereafter, they book for a test drive and if they find it good enough, they purchase it.

Thus, with proper functions, it earned good revenue and got significant investments. We will discuss it in the upcoming sections.

Fundings & Shareholders Breakdown

Within 7 years of its establishment, Spinny came into the limelight. Reason? Due to its effective functioning. However, another reason for being in the headlines is its potent VCs that act as the backbone of the company. All thanks to those venture capitalists due to which Spinny valuation rose to Rs.13,202 crore.

Let’s look at the funding rounds of Spinny-

Spinny has raised a total of $513.5 million in funding over 9 rounds. Its latest funding round occurred on December 14, 2021.

Currently, Spinny valuation is Rs.13,202 crore ($1.61 billion). Unfortunately, the company has not disclosed the percentage of shares owned by each shareholder in the current fiscal year.

Is Spinny Profitable?

The total revenue of Spinny grew at the rate of 4.5X to Rs.180 crore. If you compare this with the revenue earned last year, you will notice a massive difference. Because last year it earned Rs.39.7 crore (FY21).

Simultaneously, Spinny’s expenses increased rapidly too! And that was a turning point for the company. Why? You may ask. Because in FY21 its expenses were Rs.150 crore. But in FY22, its expenses exponentially rose to Rs.670 crore. You can say that its expenses increased up to 346%.

All of this resulted in a huge loss for the company. The losses surged 582% to Rs.220 crore in FY22 whereas, in the previous fiscal year, its loss was Rs.32.2 crore.

So the answer is- Spinny is not profitable despite earning a whopping revenue!

Now, you must be wondering- What is the highest expenditure for Spinny? Where did it spend so massively that its expenses reached Rs.670 crore? It spent heavily on advertisements and promotions!

Well, that’s not the sole story for Spinny. Numerous startups are facing losses due to heavy expenditure on advertisements. So, why doesn’t it reduce the intensity of promotions and advertisements? You may wonder. See that’s not entirely possible! 

How will the customers know about the existence of your company? Only if they see any ads for your company! Marketing and advertising are equally important for your company to increase your sales and reach your target audience. That’s why Spinny had to spend heavily on promotional marketing too!

Future Plans of Spinny 

Despite having losses, Spinny hasn’t lost hope. It sees expenditures as potent investments. It is planning to expand its reach to more than 30 cities in India. Spinny is planning to simplify the online purchases of second-hand cars through its platform. Also, it is planning to multiply its workforce to over five thousand employees at the end of this year. 

To promote the brand, Spinny is associated with sports icons like PV Sindhu and Sachin Tendulkar. The former is a well-known customer of Spinny. And the latter is a strategic investor and brand ambassador of the company. Thus, Spinny has increased its popularity in India and won the trust of investors.