The used car market in India seems to be on a growth trajectory owing to rapid digitisation in the automobile industry, decrease in the average ownership tenure and proliferation in the number of online sales platforms including Cars24, Droom, OLX, among others. Amid this, Spinny, a used-car startup is gearing up to be the next big boy in the automobile industry. “Spinny has been conservative towards marketing since its inception in 2015 and were overcautious in terms of spending money. Radio was our key media where we spent money. It was only last year when we started spending money on other media,” Arshdeep Chhabra – general manager marketing, Spinny told Brandwagon Online. The company’s marketing expenses rose 7x to Rs 220 crore in FY22 from Rs 32.2 crore in FY21, according to regulatory filings fetched by business intelligence platform, Tofler. Chhabra however, declined to comment on this current fiscal’s ad budget.
Regulatory filings revealed that the Gurugram based pre-used car company’s revenue from operations rose 3.5x to Rs 109.4 crore in FY22 from Rs 25.2 crore in FY21. The company’s net loss widened to 3.5x to Rs 490 crore from Rs 110.2 crore, during the same period in the corresponding year.
According to a report jointly published by IndianBlueBook, an auto technology platform and Das WeltAuto, the pre-owned car business of Volkswagen Passenger Cars India, the Indian used-car market valued at about Rs 1900 billion in FY 2021-2022 today, is projected to grow at a cumulative annual growth rate of 19.5 percent till FY 2026-2027, which is double to the current growth rate. However, this is a largely unorganised sector.
The company currently claims to operate 57 car hubs, across 22 cities, including Delhi NCR, Bangalore, Mumbai, among others. “With Bengaluru, Delhi-NCR and Hyderabad being the top three car-buying cities, the average ticket size for Spinny is Rs 5 lakh per month,” Chhabra added.
The Tiger Global-backed firm claims to sell about 7,000 cars each month, that is 84,000 cars per year. According to Chhabra this is a sharp increase from around 1,000 units it sold every month in 2020. “Of the total number of cars bought from the platform, 60% are first-time car buyers and 32% are women,” he noted.
Moreover, Spinny recently launched Spinny Park, a one-of-its-kind experiential hub in Bengaluru which is spread across a total area of five acres and houses about 1,000 Spinny assured cars and Spinny Max pre-owned luxury cars.” BMW, Audi and Mercedes lead the chart in terms of preferred brands among consumers in the Spinny Max category. Gurugram, Delhi, Bengaluru and Mumbai have the maximum number of buyers in the luxury car segment,” he said.
Interestingly, the brand like any other has joined the Indian Premier League bandwagon. As an extension of its ‘Go Far’,campaign, the IPL campaign features its investor and brand ambassador Sachin Tendulkar, along with other cricketers including Anil Kumble and Yuvraj Singh. ‘Go Far For Your Squad’ is about the cricketers taking a road trip in a Spinny SUV. The campaign is about how people go far for love, for dreams, or for themselves and in the true IPL spirit, for their squad. This campaign will be promoted on JioCinemas and Star Sports along with focus on OOH and radio,” he said. he further informed.
The campaign has been conceptualised by Tanya Mahendru, directed by Arjun Singh and produced by Tiger Baby, a Zoya Akhtar production house.