Gurgaon-based startup Spinny that facilitates the purchase and sale of used cars has raised more than $280 million in its Series E financing round. Tiger Global and Abu Dhabi Growth Fund co-led the round and values Spinny at over $1.75 billion.

This year, this is the third funding round raised by Spinny. The startup was valued at $350 million in April and about $700 million in July this year.
Up from fewer than half a dozen last year, the new round follows quarters of strong growth that saw Spinny expand to 15 Indian cities. Spinny is making it more affordable and reliable for customers to buy a used car.

There is a massive growth potential for Spinny and some other startups operating in this space. According to analysts at Bernstein, the market for auto e-commerce currently has less than 1 per cent penetration in India.

“This is largely because the auto market still requires physical inspections and the target market skews towards used vehicles- an unorganized market,” they wrote in a report earlier this year.

“The total addressable market in India is around $220 billion, which includes used vehicles purchase by consumers, auctions and remarketing, the growth potential for the new vehicles market, and financing and advertisements. The total addressable market for only the used car market in the US is over $800 billion,” they wrote in a report earlier this year.

This week, Spinny is the second Indian startup to become a unicorn. More than all other years put together, India has produced more than three dozen unicorns.

SoftBank Group chief executive Rajeev Mishra said earlier this month that the Japanese firm, Tiger Global has invested more than $3 billion in India this year and can invest up to $10 billion in the country next year.