Spinny taps Kotak, Morgan Stanley and Citi for proposed Q1 2027 IPO
Used-car platform Spinny has appointed bankers for a planned Q1 2027 market debut, while expanding its buyer network from 25 to about 35 cities. The company reported FY25 revenue of ₹4,657 crore and is targeting roughly ₹6,000 crore in FY26.
What happened
Indian used-car retailer Spinny has appointed Kotak Mahindra Capital, Morgan Stanley and Citigroup for a proposed Q1 2027 IPO. It plans city expansion while
Key facts
- IPO expected in Q1 calendar year 2027
- Nearly 15,000 vehicles sold per month
- Serves buyers across 25 cities
- Sources vehicles from more than 100 cities
- Plans to expand buyer network to around 35 cities
- FY25 revenue: Rs 4,657 crore, up 25% year-on-year from Rs 3,730 crore
- FY26 revenue target: around Rs 6,000 crore
- Nearly $780 million raised
- Latest valuation: $1.5-1.8 billion
Why this matters
The appointment of Kotak, Morgan Stanley and Citi signals that Spinny is formalizing IPO readiness, potentially increasing its appetite for capability partnerships or selective acquisitions that strengthen city-level scale.
What to watch
- FY26 revenue run rate versus the approximately ₹6,000 crore target.
- Evidence of improving EBITDA, contribution margin and cash burn as city count rises from 25 toward 35.
- Inventory days, gross margin per vehicle, refurbishment costs and vehicle sell-through rates.
- Funding or IPO activity by competing used-car platforms and OEM-certified used-car businesses.
- New-city launch pace, service quality metrics and consumer adoption outside top metro markets.
- India equity-market appetite for loss-making or recently profitable consumer-internet listings in late 2026.
- Whether Spinny files draft IPO papers, appoints additional advisors, or announces a pre-IPO financing round.
- Expand buyer and sourcing operations in the planned 10 additional cities, prioritizing markets with dense used-car supply and affordable logistics.
- Increase emphasis on contribution margin, inventory aging, refurbishment turnaround time and financing attach rates ahead of pre-IPO diligence.
- Build IPO-ready governance through audited segment reporting, board strengthening, compliance processes and clearer disclosure of customer acquisition economics.
- Use the banker group to assess a mix of primary capital for expansion and secondary liquidity for existing investors.
- Defend against rivals through trust-oriented features such as warranties, inspection transparency, return policies and faster loan approvals rather than broad discounting.