Spinny plans $300 million IPO

Spinny plans $300 million IPO

Indian used-car platform Spinny is gearing up for an initial public offering (IPO) to raise between $250 million and $300 million.

The company has hired Morgan Stanley, Kotak Mahindra Capital, and Citi India as advisors for the process.

If successful, this would make Spinny the first major player in India's used-car platform space to go public, ahead of competitors like Cars24 and CarDekho.

Spinny's founding team and early investors eye exit

The upcoming IPO is not just a fundraising exercise, but also an exit opportunity for some of Spinny's early investors.

The company was founded in 2015 by Niraj Singh, Mohit Gupta, and Ramanshu Mahau during the boom of India's used-car market.

Over the years, Spinny has raised over $700 million from several investors including Tiger Global Management and Elevation Capital.

Spinny's financial performance in FY25

In FY25, Spinny's revenue from operations increased to ₹4,656.83 crore from ₹3,730.01 crore in FY24.

The company's losses also narrowed down to ₹423.81 crore from ₹587.52 crore in FY24, according to filings sourced by Tofler from the Ministry of Corporate Affairs.

Despite being a latecomer in India's used-car market, Spinny has managed to establish itself as a major player with its focus on transparency and trustworthiness in buying used cars.

Growth potential of India's used-car market

India's used-car market is growing at a rapid pace, with an estimated value of $70 billion by 2031.

This presents a huge opportunity for organized platforms like Spinny that offer a comprehensive package including wider vehicle selection, competitive pricing, authenticity, financing options, and value-added services.

Despite the unorganized segment accounting for about 80% of the market, it often falls short on critical aspects such as transparency and customer experience.