The investment firm Tiger Global Management is in talks to invest $100 million in used-car retailing platform Spinny, more than doubling the Gurugram-based company’s valuation to $800 million.
In 2015, founded by Niraj Singh, Mohit Guota and Ramanshu Mahuar, Spinny is a pre-owned car retailing platform. It works on an online-to-offline mechanism, where the customers search and select cars through an online medium but make the final purchase offline.
The discussions between Tiger Global and Spinny are at an advanced stage and the deal is likely to be closed soon.
In March, Spinny raised around $43.7 million in a series B round led by the Fundamentum Partnership, a mid stage focused growth fund backed by Infosys co-founder Nandan Nilekani and investor Sanjeev Aggarwal.
Spinny was valued at $350 million is its last funding round in April in which it had raised $65 million from investors like General Catalyst and Think Investments, said the publication.
The platform sold about 3,000 cars in March 2021, more than double of what is had sold in the year-ago month, before the second wave of COVID-19 disrupted the business.
Spinny uses an online-to-offline model, which allows the customers to discover cars over its website and make the final purchase over the Spinny Car Hub, offline. Once the customer has booked the car, the company takes care of all of the paperwork and provides the users with a financing option through its bank partners.
The company expanded its operations to Mumbai, Ahmedabad, Chennai and Kolkata this year. And it plans to increase its presence in 5-6 more cities by the end of the year.