Gurugram-headquartered used car platform Spinny has acquired Mumbai based rival Truebil. The Truebil platform will continue to operate as an independent brand for now.
Truebil operated a C2C used car marketplace along with a full-stack direct retail program, Truebil Direct. Serving Mumbai, Bengaluru, and Delhi NCR, Truebil clocked over Rs 250 crore in annual sales before the COVID outbreak.
The venture managed to raise a total of $24 million in funding, (including $4 million in debt funding) and its major institutional investors include Kalaari Capital, Shunwei Capital, Kae Capital, Inventus Capital and Spiral Ventures.
While both Spinny and Truebil have refrained from commenting on the commercials and exact details of the deal, Truebil's co-founder and CEO Suraj Kalwani shared his experience of building Truebil and the reasons behind his decision of selling out the company to Spinny.
"At Truebil, we have built a technology-driven retail platform enabling trust and seamless consumer experience for used car buyers. Truebil thrived in building consumer-centric products aided by technology and data science, helping consumers make objective decisions in their used car purchase,” said Kalwani.
“We were operating across three major cities in India and our endeavour to scale our services across the country; we were excited to share a similar vision as Niraj and team at Spinny. We realized that by augmenting each other's capabilities, we could accelerate towards building the country's largest and the most trusted used car brand.”
Spinny's co-founder and CEO Niraj Singh said, "We like and respect the capabilities Suraj and his team have built at Truebil and find certain merit in that for Spinny, so this deal was a natural move for us. But given Spinny is still in its early days, we will let the Truebil platform keep operating as an independent brand for now. We will reassess merging within the Spinny brand umbrella after some time."
With this acquisition, Spinny claims it becomes the only used car startup in India that follows a full-stack retail platform model and operates on the organised side of the market. Other peers like Cars24, CarDekho, OLX and others provide their services mostly in the unorganised classifieds and dealer ecosystems side of the market, it claims.
While a lot of industries are seeing a significant reduction in customer demand due to the pandemic, the used car market has gained momentum globally due to a change in personal transport preferences.
Commenting on Spinny’s plans, Niraj further added, “Building capabilities for best in class quality and customer experience has always been our top focus area. We will keep doubling down on our efforts there. Meanwhile, we will also keep going deeper into our existing markets and soon activate a few more markets.”
Currently offering its services across Delhi NCR, Bengaluru, Hyderabad, and Pune, Spinny operates through a full-stack online-to-offline retail platform model and has seen significant tailwind in its business post-COVID-19 outbreak.
In March 2020, Spinny announced the completion of its $43 million plus series B round led by Nandan Nilekani's venture fund, The Fundamentum Partnership. The round saw participation from existing investors Accel and SAIF Partners. Accel and SAIF Partners had co-led the company's $13 million plus Series A round in April 2019.
Looking at how similar modelled players have performed across the globe, the used car market is poised to grow and emerge stronger than before from the COVID crisis. US-based online used car player - Carvana’s stock price has seen a 5x jump this quarter to an all-time high value.
Not only existing listed players are reaping the benefits of these tailwinds, but also new stock market entrants are making the most of the situation.
Another similarly modelled player, US based Vroom, entered the public markets in June 2020 and saw a massive interest, so much so that it overshot its initial raise plans by ~4.5x and its valuation almost doubled on the day of the IPO.
Looking at the public market performance of such companies in the US, investors have taken an eye out for similar players across global markets. UK-based Cazoo announced a new funding round that values the company at over a billion dollars, making it the latest startup to attain unicorn status in this segment and making Cazoo the fastest unicorn in the UK.