Spinny, a used car platform, backed by Tiger Global, is set to raise over $100 million in a new funding round, largely from existing investors, after a gap of nearly three years, sources revealed.

“Spinny could raise up to $120 million from internal investors including Elevation Capital, Abu Dhabi Growth Fund, General Catalyst and Accel among others,” said one of the sources on condition of anonymity.

"According to sources, the discussions are still in their infancy and may take around a quarter to finalize. If successful, Spinny would become the first used car platform to secure funding since late 2021, with its valuation expected to remain relatively steady in the proposed round."

Spinny has emerged as a clear leader in the used car retail market since successfully developing a demand-first transaction model, which has been supported by the ability to achieve low customer acquisition costs and high gross margins.

In addition to its core business, Spinny is expanding its auction-based services for dealers and car financing operations. Sources said that a large portion of the funding round is likely to go into scaling its lending business.

“Spinny sells close to 7,000 cars every month with an average transaction size of around 6 lakhs. It also sells around 5000 more cars every month on its B2B auction platform,” said the source mentioned above.

The others - including Spinny, Accel, Elevation, and General Catalyst - declined comment on the matter. TheKredible's data says that till now, the company has received about $500 million, where the largest investor is Tiger Global and the other is Accel with 14.25% and 13.25% stakes respectively.

In the fiscal year ending March 2024, Spinny reported a revenue growth of 14% to Rs 3,725.02 crore, up from Rs 3,259.78 crore in FY23, while its losses narrowed by 28% to Rs 590.37 crore.