Spinny's Digital Sales Surge to 70% with 13% Increase in 2023

The increased demand for digital sales this year boosted the sales of Gurugram-based used car retailer Spinny. The company stated that the number of online car sales increased by 13 per cent, reaching 70 per cent of all sales, up from 48 per cent in 2022.   

In its statement, the company mentioned that it grew by more than 40 per cent compared to the previous calendar year, due to digitalisation and easy financing options. Due to the rising demand for used cars and the festive season in the latter half of the year, the growth rate in Q4 was 1.5 times higher than in Q3.

During the festive season, spanning from the 15th of October (the first day of Navratri) to Diwali, Spinny managed to sell over 8000 cars, the report observed. 

In Kochi, the growth rate on the Spinny platform during the Onam festival surpassed that of Q1, experiencing a remarkable 1.8 times increase, it added.  

In 2023, over 46 per cent of Spinny customers chose car financing through Spinny Capital. Corporate professionals constituted 71 per cent of the company's customer base. Among the types of cars, compact SUVs were the top choice, followed by hatchbacks and sedans, it observed.   

The report also reveals that Bengaluru, Delhi-NCR, and Hyderabad were the cities with the highest demand for used cars in 2023. The company witnessed a consistent increase in women car buyers, with 35 per cent of women car buyers opting for Spinny cars.   

Niraj Singh, the founder and CEO of Spinny said, "The surge in demand for used cars reflects the trust our customers place in Spinny's offerings and services. A car is not just a purchase; it's a special addition to a home, and we’d keep going far to make it extraordinary for each customer."   

The used car market in India has been experiencing robust growth and is projected to jump from 4.6 million units in FY23 to 8 million in FY27.    

Home deliveries were chosen by 31.8 per cent of Spinny buyers, with 70 per cent opting for completely online purchases. May stood out as the month with the highest number of sales, it added.     

The report highlighted that with luxury used car trends, Spinny Max observed high demand from Delhi NCR, followed by Bangalore and Mumbai. 

Spinny became a unicorn in December 2021 by securing $283 million in a funding round.

As per the consolidated financial statements filed with the Registrar of Companies, Spinny's gross merchandise value (GMV), skyrocketed from Rs 109 crore in the financial year 2022 to an impressive Rs 3,262 crore in the financial year 2023. 

The massive increase in revenue can be attributed to the cash and carry model, as the company used to solely generate income from commissions on car sales in the previous fiscal years. Car sales accounted for 95 percent of the total gross operating revenue, which registered at Rs 3,105 crore in FY23.