Deeptech Startup Spyne Lands $16M in Series A Round

Spyne, a Gurugram-based deeptech startup specializing in the automotive sector, has secured $16 million in a Series A funding round led by Vertex Ventures. The round also saw participation from existing investors Accel, Storm Ventures, and Alteria Capital. The newly acquired funds will be used for market expansion and product development initiatives.

In April 2022, Spyne raised $7 million in a pre-Series A funding round. Founded in 2020 by Sanjay Varnwal and Deepti Prasad, the company initially developed technology solutions based on computer vision platforms for various industries, including e-commerce, food delivery, and automotive. However, it later chose to focus solely on the automotive sector.

“We decided to concentrate on a single category and dive deep into it. The automotive industry presents a vast market opportunity,” said Sanjay Varnwal, Co-founder and CEO of Spyne. The company is also expanding its reach by targeting automotive original equipment manufacturers (OEMs). According to Varnwal, this strategic pivot has significantly boosted Spyne’s growth, with its revenue increasing nearly fivefold over the last 15 months. The company anticipates a threefold revenue increase in FY25-26.

Currently, over 60% of Spyne’s revenue comes from the US market, followed by Europe. The startup plans to leverage the fresh capital to enhance its go-to-market strategy, particularly in the US, where it intends to establish a stronger local presence.

Spyne’s clientele primarily includes small and medium-sized dealer networks in the US and Europe. The company provides a comprehensive technology stack that digitizes business operations using AI and Generative AI (GenAI) capabilities.

“At Vertex, we have long believed in specialized AI applications solving vertical use cases. Spyne has successfully addressed a critical challenge for auto dealerships by leveraging AI to optimize vehicle merchandising and retail operations at scale,” said Piyush Kharbanda, General Partner at Vertex Ventures SEAI.

Pratik Agarwal, Principal at Accel, added, “The team’s persistence in addressing go-to-market challenges, combined with their capital-efficient approach, has positioned them close to profitability.”