Spinny, an emerging leader in India’s digital used-car market, has pre-filed for an IPO targeting a 2027 listing. While revenue growth remains strong, profitability remains a hurdle as the company seeks to justify valuation amidst a cautious auto sector.
- Spinny targets ₹2,500-3,000 Cr IPO to fund growth and expansion
- Revenue grew to ₹6,000 Cr in FY26 but losses persist, narrowing 28%
- New services like Spinny Circle and GoMechanic acquisition diversify revenue streams
What happened
The company reported rapid revenue growth, with operating revenue nearly doubling to ₹4,656 crore in FY25 and estimated growth to around ₹6,000 crore in FY26. Despite growth, Spinny is still posting losses, reporting a ₹423.8 crore loss in FY25, though its losses narrowed by 28 percent year-over-year. Alongside core used-car sales, Spinny is launching new business lines, including Spinny Circle, a platform for new-car dealerships to manage exchange vehicles, and has acquired GoMechanic, a car servicing startup, to broaden its ecosystem.
Why it matters
India’s used-car market is rapidly expanding driven by value-conscious consumers, with projections estimating it will reach $70 billion by FY31 and annual vehicle sales of 9-10 million at a compounded growth rate of 14-18 percent. Spinny’s ambitious IPO move reflects growing investor interest in capturing this shift towards organized online used-car retailing. However, profitability challenges highlight the tension between rapid scale and sustainable margins.
The broader auto sector sentiment also plays a role in Spinny’s market debut potential. The Nifty Auto index has experienced a recent correction, which could temper investor enthusiasm for new auto commerce IPOs. Spinny’s ability to diversify and integrate financing, insurance, warranties, and servicing could improve inventory turnover and revenue diversification, shaping its post-IPO valuation and long-term growth trajectory.
What to watch next
Additionally, the performance of Spinny’s ancillary ventures such as Spinny Circle and the integration of GoMechanic’s services will be critical. These initiatives could serve as value drivers by enhancing supply chain efficiency and generating recurring revenue. Monitoring broader sector sentiment, including investor appetite for auto tech and marketplace IPOs in India, will also be essential to gauge the reception Spinny receives on its public-market debut.