Spyne Bags $16 Mn To Build GenAI Suite For Automotive Dealers

SUMMARY

Spyne has raised $16 Mn in Series A funding led by Vertex Ventures, with plans to expand its US dealer base from 1,200 to over 3,000 in the next 12 months

The Gurugram-based startup will use the funds to develop a comprehensive GenAI-powered retail suite for auto dealers that covers everything from vehicle sourcing to customer management

Having grown revenue 5X in the last 12-15 months, Spyne aims to establish a dedicated US team and is exploring acquisition opportunities in inventory, software and digital marketing segments

Gurugram-based automotive SaaS startup Spyne has secured $16 Mn (around INR 131 Cr) in a Series A funding round led by Vertex Ventures, along with participation from existing investors like Accel, Storm Ventures and Alteria Capital.

The startup plans to deploy the fresh capital for expanding its presence in the US market, boosting technology infrastructure and developing GenAI-powered retail suite for automotive dealers.

“We are looking to set up a small focused team in the US which will target larger OEMs and dealership groups,” Sanjay Varnwal, cofounder of Spyne, told Inc42.

Founded in 2020 by Varnwal and Deepti Prasad, Spyne offers AI-powered visual merchandising solutions for auto dealers. The startup has developed proprietary technology that transforms raw car photos into studio-quality images with automated damage detection.

“Product is very superior. We started with image, got into 360 next, then video like a TikTok-style video with voiceover. We are getting into 3D generation of cars, 3D configurator, showrooms,” Varnwal explained.

The company plans to expand from its current base of 1,200 dealers to over 3,000 in the next 12 months, with an ambitious target of reaching 20,000 dealers in the next 3-4 years.

Beyond visual merchandising, Spyne is now building a comprehensive retail suite. “We are looking to build software which will unify the entire software stack with very new age GenAI doing most of the work for dealers – starting from sourcing to eventually customer management,” Varnwal said.

The startup claims to have grown its revenue 5X in the last 12-15 months while maintaining operational efficiency. “We were running in a very efficient, operationally profitable zone. Because we are now aggressively growing, we will delay profitability by another 5-6 months,” Varnwal added.

Currently at 180 employees, Spyne plans to expand to 220-230 people, focusing mainly on its US team. The company is also exploring acquisition opportunities, including small inventory providers, software companies, and digital marketing firms in the US.

Spyne’s Series A funding round follows its pre series A, $7 Mn funding in April 2022, which was led by Accel with participation from Storm Ventures and Smile Group. The startup raised INR 4.5 Cr in a seed funding round in May 2020 led by AngelList.

Spyne competes with established players like CDK Global, Cox Automotive and Solara in the US market, which generate software revenues of around $1.7 Bn. The company is targeting another funding round in the next 12-18 months to fuel its aggressive expansion plans.

Indian AI startups continue to attract significant investments. Last week, ArthAlpha, an investment tech platform raised $2 Mn to build AI-powered research tools.

In January 2025, Gurugram’s ProcureYard raised $1.72 Mn in seed funding from Powerhouse Ventures, achieving profitability with INR 300 Cr annual recurring revenue within 18 months.

In the same month, Bengaluru’s Quash secured $635K in pre-seed funding from Arali Ventures for its mobile app testing platform, while Mumbai-based Klassroom raised pre-Series A funding from ah! Ventures, reporting 35% EBITDA profitability.

Inc42 data shows Indian AI startups have raised over $600 Mn since 2019, with the GenAI market expected to reach $17 Bn by 2030, indicating strong investor confidence across sectors.