Spinny Acquires Scouto To Leverage Car Connectivity Solutions
Scouto's founders will keep building connected car offerings under Spinny stable
Spinny, a pre-owned car retailing startup, on Thursday announced it has acquired 100 per cent stake in DevX Venture Fund- and iCreate-backed Scouto, an AI-powered connected car startup. The deal marks one of the first consolidations in the AI-powered used car solutions segment where Spinny is gunning big to emerge as the market leader, the company said in a statement.
"As part of the acquisition, Scouto's founders will become an integral part of Spinny and help build and drive our connected car offerings forward. We are very excited about the integration and the synergies of Scouto with Spinny," said Niraj Singh, founder and CEO, Spinny.
Spinny recently became a Unicorn after the close of its Series E funding round of $283 million led by Abu Dhabi Growth Fund and Tiger Global Management. The closure of Series E round for Spinny took its valuation to $1.8 billion making it a part of the "Unicorn Club'. The market of used cars is expected to grow at a rate of 15 per cent in FY22 and is set to grow from 3.8 million vehicles in 2020-21 to 7 million vehicles by 2025-26 with the pandemic, digitalization, first-time buyers and other factors being the prime accelerators, according to a report by OLX Autos and CRISIL.
"It is Day 1 for us at Scouto again, and our goal is to ensure that every car in India is connected. We will accomplish our goals with Spinny and continue to design, build and innovate new technologies that provide an unparalleled customer experience," said Akshay Gupta, Co-founder and CEO, Scouto.
Founded in 2015, Spinny is a used car retailing platform. It operates across the entire value chain of pre-owned cars and has 36 car hubs and operational in 22 cities including Delhi, Gurugram, Noida, Bangalore, Mumbai, Pune, Hyderabad, Chennai and Kolkata. Former Indian cricketer Sachin Tendulkar has partnered with Spinny as a strategic investor and a brand ambassador whereas Scouto has built an end-to-end connected car technology that provides detailed intelligence on car's health and performance. Founded by ex-race car driver and CEO Akhsay Gupta, and the CTO Shubham Sharma, the company caters to various startups in the automotive aftermarket and used car space in India. In FY22, Scouto clocked approximately INR 5 crore in revenue.