Deeptech startup Spyne raises $16M in Series A round led by Vertex Ventures
Spyne, the Gurugram-headquartered deeptech startup dedicated to the automotive sector, has successfully raised $16 million in a Series A funding round led by Vertex Ventures. This round also saw participation from existing investors such as Accel, Storm Ventures, and Alteria Capital.
The company, which provides software-as-a-service (SaaS) solutions, plans to utilize the newly acquired funds for market expansion and to enhance product development activities. This funding comes as a follow-up to the $7 million raised in a pre-Series A round in April 2022.
Founded in 2020 by Sanjay Varnwal and Deepti Prasad, Spyne initially built its technology solutions on computer vision platforms targeting various segments, including ecommerce and food delivery. However, the company made a strategic decision to focus solely on the automotive sector.
“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,” commented Sanjay Varnwal, Co-founder and CEO of Spyne.
As part of its expansion strategy, Spyne intends to target automotive original equipment manufacturers (OEMs), enhancing its market reach. This shift in focus has yielded significant results, with the company experiencing a 5X revenue growth over the past 15 months. Spyne anticipates a further 3X revenue growth in the fiscal year 2025-26.
Currently, the US market contributes more than 60% of Spyne’s revenue, followed by Europe. The startup plans to strengthen its go-to-market strategy, particularly in the US, by deploying personnel on the ground.
Spyne’s clientele includes small and medium-sized dealer networks across the US and Europe. According to Varnwal, the company offers a comprehensive technology stack that enables businesses to digitize their operations entirely, utilizing AI and GenAI features.
Piyush Kharbanda, General Partner at Vertex Ventures SEAI, stated, “At Vertex, we have had a longstanding thesis around specialized AI applications solving vertical use cases. Spyne has proven this in solving a fundamental pain point for auto dealerships leveraging AI to optimize vehicle merchandising and retail operations at scale.”
Pratik Agarwal, Principal at Accel, added, “The team’s resilience in solving GTM, combined with their capital-efficient approach, has brought them close to profitability.”
With Spyne’s focused approach and strategic investments in the automotive sector, the company is poised to drive significant advancements in vehicle merchandising and retail operations, powered by cutting-edge AI technologies.
