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Economic Times
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Spinny cuts FY24 net loss to Rs 590 crore; revenue up 14% on year to Rs 3,275 crore
- Gurugram-based used car sales startup Spinny reported a 14% YoY increase in operating revenue to Rs 3,275 crore for FY24, while the company managed to narrow its net loss to Rs 590 crore from the previous year's Rs 820 crore.
- Spinny's loss reduction was mainly due to gross margin expansion, rationalisation of buffer capacity and increased tech-product intervention across departments according to its founder and CEO, Niraj Singh.
- Spinny's operating revenue now reflects the value at which it sells its vehicles, which means the cost at which it purchased its stock cars is reflected under its expenses.
- The company also merged its budget and luxury car offerings into its main platform, which resulted in the laying off of 300 employees, and cut back on marketing costs by spending only Rs 141 crore compared to Rs 328 crore in FY23.
- Spinny's topline is expected to grow 25-30% in FY25, and the company's ancillary services such as car financing and servicing, which have so far remained a negligible portion of Spinny's topline, will increasingly start contributing to its revenue, according to Singh.
- The long-term fundamentals for the used-car segment remained strong.
- SoftBank-backed Cars24, Peak XV Partners-backed CarDekho, and listed firm CarTrade are among Spinny's competitors.
- CarDekho reported a marginal 1.5% YoY decline in its operating revenue for FY24 at Rs 2,297 crore while its net loss reduced significantly to Rs 186 crore in FY24 from Rs 517 crore in FY23.
- New-age used-car platforms increased their efforts on generating revenue from ancillary sources such as auto financing, insurance and classifieds, after witnessing a slowdown in growth.
- Spinny had last raised $283 million in December 2021 led by Abu Dhabi-based ADQ in a round that valued the firm at $1.7 billion.
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