Used car marketplace Spinny is reportedly preparing for an initial public offering (IPO) targeted for the first quarter of 2027. The Tiger Global-backed unicorn has engaged prominent financial institutions, including Kotak Mahindra Capital, Morgan Stanley, and Citigroup, to manage the public listing. This strategic move signals the company's ambition to capitalize on its market growth and solidify its position in the automotive sector.
Strategic IPO Preparations
The proposed public float is expected to comprise a combination of a fresh issue of shares and an offer for sale (OFS) from existing stakeholders. While discussions are in the preliminary stages, crucial details such as the issue size and final valuation are yet to be determined. The appointment of leading global and domestic banks underscores the seriousness of Spinny's intent to go public within the next few years.
Recent Funding and Valuation
This development follows a significant $170 million funding round the company secured earlier in February, led by US-based investors Fidelity Investments and Accel India. The capital infusion was structured with $90 million in primary capital and the remaining $80 million facilitated through secondary transactions. This funding provides Spinny with substantial resources as it prepares for its next major corporate milestone.
The secondary component of the round allowed early investors, including Blume Ventures and Fundamentum, to partially exit their holdings. These shares were acquired by Fidelity Investments and WestBridge Capital, demonstrating continued investor confidence in the platform's long-term potential. The transaction valued Spinny at approximately $1.5 billion, a slight adjustment from its previous $1.7 billion valuation.
Financial Performance and Market Position
Spinny's IPO ambitions are bolstered by its strengthening financial health, as it successfully narrowed its net loss by 28% to ₹423.8 crore in fiscal year 2025. This improvement was driven by a significant 25% surge in operating revenue, which climbed to ₹4,656.1 crore. The positive financial trajectory for the second consecutive year highlights the company's operational efficiency and growing market acceptance.
Founded in 2015, Spinny has established itself as a key player in India's burgeoning used car market, competing with entities like Cars24 and CarDekho. The company has raised approximately $676 million to date, attracting major backers such as Tiger Global and Accel. Its growth aligns with a broader consumer shift towards organized and reliable platforms for pre-owned vehicle transactions.
Spinny's planned IPO marks a pivotal moment for the company, reflecting its robust growth and improved financial discipline. With substantial venture capital backing and a strong position in a competitive market, the public listing is poised to fuel its next chapter of expansion. This strategic move will be closely watched by investors and competitors as the Indian used car market continues to mature.