Spinny’s IPO Ride, But What’s Under The Hood?

by · Inc42

SUMMARY

  • Spinny is gearing up for an IPO as India’s used-car market accelerates. But beneath the growth lies a bigger question: can profits keep pace?
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Five years ago, CarTrade became one of the first digital auto marketplaces to test India’s public markets. The company went public in August 2021 at ₹1,618 per share. Five years on, its stock has climbed to around ₹3,000, offering an early read on how investors have valued the online auto marketplace story.

Now, a new crop of used-car and auto commerce startups is preparing to embark on the same quest. Spinny, Cars24 and CarDekho are gearing up for potential public-market debuts. Spinny has pre-filed its IPO papers and is looking to raise ₹2,500 Cr to ₹3,000 Cr through a combination of fresh shares and an offer for sale (OFS), sources told Inc42. 

The Gurugram-based startup is targeting a potential listing in 2027. However, the timeline will depend on regulatory approvals, and the final issue size and structure could change during the IPO process.

Spinny’s IPO plans have come to the fore as buying a used car is increasingly becoming a mainstream choice, thanks to the value-conscious Indian consumer. According to Redseer, India’s used-car market is expected to reach around $70 Bn by FY31, with annual sales projected to touch 9-10 Mn vehicles and the segment expected to grow at a 14-18% CAGR.

However, for Spinny, which has built a sizeable business, the real test is converting scale to profitability. Now, let’s get right into the numbers to see how the company is faring financially and what its IPO-bound journey could look like.

Spinny Is In The Fast Lane, But Profits Lag Behind 

Spinny’s numbers suggest a business that is scaling rapidly but still working towards consistent profitability. Its operating revenue nearly doubled over two years to ₹4,656 Cr in FY25 and is estimated to have grown another 29% to around ₹6,000 Cr in FY26. The company expects another 25%-30% growth this fiscal. However, it reported a loss of ₹423.8 Cr in FY25, although the loss narrowed by 28% from the previous year.

Investors have shown that they are willing to back new-age companies, but growth alone is no longer enough. Spinny’s IPO will therefore be watched not just for the size of the issue or its valuation, but for how the market prices the trade-off between growth, profitability and the capital required to build a large used-car platform.

The recent correction in auto stocks adds another layer to its IPO story. The Nifty Auto index has fallen nearly 6% this month after several months of gains, while some major OEMs have seen sharper pullbacks. 

“Although used-car marketplaces have a different business model from traditional auto companies, a softer sentiment towards the broader auto sector could influence how investors initially approach the category,” an analyst said.