Gurugram-based Spyne, an AI-powered visual merchandising startup for auto dealers, has raised $16 million in a Series A funding round to expand its US market presence, enhance visual merchandising, and accelerate revenue growth with GenAI-powered innovations.

The Series A was led by Vertex Ventures, with existing investors Accel, Storm Ventures, and Alteria Capital also participating. The startup plans to use the fresh capital to expand its US presence, enhance technology infrastructure, and develop a GenAI-powered automotive retail suite.

Since its founding in 2020 by Sanjay Varnwal and Deepti Prasad, Spyne has transformed how auto dealers showcase vehicles. Its proprietary AI technology enhances car photos, making them studio-quality while detecting any damage. The company is set to scale its US dealer base from 1,200 to over 3,000 within the next 12 months, targeting 20,000 dealers globally in the next three to four years.

“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, said.

Spyne has experienced 5X revenue growth in just 15 months, demonstrating strong market traction. The startup currently generates 70 percent of its revenue from the US, with Europe contributing 25 percent. To fuel expansion, it plans to increase its workforce from 180 to 230 employees, focusing on building a dedicated US team.

Spyne Developing AI-Driven Retail Suite

Beyond visual merchandising, Spyne is building an AI-powered retail suite for auto dealers that will cover vehicle sourcing, pricing, digital transformation, and customer management. The company aims to streamline dealership operations and enhance customer engagement by integrating GenAI solutions.

“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 said.

Spyne is actively exploring acquisition opportunities in the inventory management, software, and digital marketing sectors as part of its aggressive growth strategy.

“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.

Competing in a Billion-Dollar Market

Spyne faces competition from CDK Global, Cox Automotive, and Solera, which dominate the $1.7 billion US automotive software market. However, with AI-driven innovation, Spyne aims to disrupt traditional auto retail models.

Following its $7 million pre-Series A funding in 2022, Spyne is now eyeing another funding round in the next 12-18 months to accelerate global expansion.

Indian AI startups continue attracting major investments. Recently, ArthAlpha secured $2 million for AI-powered investment tools, while ProcureYard raised $1.72 million in January 2025, achieving profitability with an INR 300 Cr annual recurring revenue. Additionally, Quash and Klassroom secured early-stage funding for AI-driven solutions. Since 2019, Indian AI startups have raised over $600 million, with the GenAI market projected to hit $17 billion by 2030.

With this latest funding, Spyne is well-positioned to expand in the US, EMEA, and APAC markets, driving AI-powered digital transformation in the auto retail industry.

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