Automotive Tech Startup Spyne Raises $16M in Series A Funding

Gurugram-based automotive technology company Spyne has secured $16 million in Series A funding, led by Vertex Ventures, with participation from existing investors Accel, Storm Ventures, and Alteria Capital.

The investment marks a significant milestone for the company, which pivoted from a broad computer vision platform to focus exclusively on automotive solutions. The strategic shift has paid off, with Spyne reporting a five-fold revenue increase over the past 15 months.

"We decided to focus on one category and deeply into it. Automotive is a sector that presents us with a large market opportunity," said Sanjay Varnwal, Co-founder and CEO of Spyne. The company, founded in 2020 by Varnwal and Deepti Prasad, now derives over 60% of its revenue from the U.S. market, with Europe accounting for most of the remainder.

The fresh capital will fuel Spyne's market expansion, particularly in the United States, where it plans to establish a local presence. The company serves small and medium-sized dealer networks with AI-powered solutions for digitizing automotive retail operations.

"Spyne has proven this in solving a fundamental pain point for auto dealerships leveraging AI to optimize vehicle merchandising and retail operations at scale," said Piyush Kharbanda, General Partner at Vertex Ventures SEAI.

The startup raised $7 million in pre-Series A funding in April 2022 and expects to triple its revenue in FY25-26. According to Accel Principal Pratik Agarwal, the company's efficient approach has positioned it near profitability.