Deeptech startup Spyne raises $16M in Series A round led by Vertex Ventures
Spyne will also use the fresh capital to strengthen its go-to-market strategy, especially in the US market, where it plans to have people on the ground.
Spyne, the Gurugram-headquartered deeptech startup focused on the automotive segment, on Tuesday said it raised $16 million in a Series A funding round led by Vertex Ventures. Existing investors Accel, Storm Ventures, and Alteria Capital also participated in the round.
Spyne, which offers software-as-a-service (SaaS) solutions, will use the fresh funds for market expansion and product development activities. In April 2022, the company had raised $7 million in a pre-Series A funding round.
Founded in 2020 by Sanjay Varnwal and Deepti Prasad, Spyne earlier focused on technology solutions based on computer vision platforms for ecommerce, food delivery, automotive, etc., segments. However, it decided to pivot to just one sector—automotive.
“We decided to focus on one category and go very deep into it. Automotive is a sector that presents us with a large market opportunity,” said Sanjay Varnwal, Co-founder and CEO of Spyne.
Spyne also aims to expand its market reach by targeting the automotive original equipment manufacturers (OEMs).
According to the CEO, this pivot has paid rich dividends, with the company's revenue growing by almost 5X in the last 15 months. It expects its revenue to grow 3X in FY25-26.
Today, Spyne gets over 60% of its revenue from the US market, followed by Europe. The startup will also use the fresh capital to strengthen its go-to-market strategy, especially in the US market, where it plans to have people on the ground.
Spyne's customer base encompasses small and medium-sized dealer networks in the US and Europe. According to Varnwal, the company provides a technology stack that can digitise businesses' entire operations with AI and GenAI features.
Piyush Kharbanda, General Partner at Vertex Ventures SEAI, said, "At Vertex, we have had a longstanding thesis around specialised AI applications solving vertical use cases. Spyne has proven this in solving a fundamental pain point for auto dealerships leveraging AI to optimise vehicle merchandising and retail operations at scale.”
Pratik Agarwal, Principal at Accel, said, “The team’s resilience in solving GTM, combined with their capital-efficient approach, has brought them close to profitability.”
Edited by Suman Singh