Spinny, a used car retailing platform, has recently taken a significant step in its operations, but that has come at a cost. The company, backed by Tiger Global, announced that it has merged its Truebil and Spinny Max divisions into its core Spinny platform. While this move aims to streamline processes and offer customers a more seamless experience, it has also resulted in layoffs.
During a town hall meeting on August 2, Niraj Singh, CEO and cofounder, Spinny, revealed the decision to merge the divisions. The move followed Spinny’s acquisition of Truebil, a Mumbai-based rival, in 2020, which aimed to strengthen the company’s position in the budget-car segment. On the other hand, Spinny Max specialised in pre-owned luxury cars from esteemed brands like BMW and Mercedes.
The used car industry has experienced shifts in demand as the pandemic situation improved and people returned to offices. With an increased demand for reliable and budget-friendly cars, Spinny aimed to cater to a broader range of customers by consolidating its inventory onto a single platform.
However, this consolidation move comes with a downside, impacting around 4.5% of Spinny’s total workforce. Despite the layoffs, the company remains optimistic about its future. Currently valued at approximately $1.6 billion, Spinny operates over 55 car hubs across 22 cities and has raised around $530 million in funding. The company believes that the reorganisation will strengthen its go-to-market strategy, optimise costs, and improve profit margins, ultimately leading to profitability.
Unfortunately, Indian startups, including those in the used-car industry, have faced funding challenges, leading to cost-cutting measures and layoffs. CarTrade Tech’s recent acquisition of OLX’s operations further indicates the ongoing trend of consolidation in the sector.
While Spinny’s decision to merge its platforms shows its commitment to adapt to market demands, it also highlights the challenges companies face in navigating a competitive landscape while ensuring the well-being of their employees.