Spinny Revs Up: Slashes Losses by 28%, Fuels Growth with 25% Revenue Surge in FY24

Spinny, India's rapidly expanding used-car retailing platform, has announced a phenomenal financial turnaround for the fiscal year 2023-24, showcasing a significant stride towards profitability. The company successfully reduced its standalone losses by a remarkable 28 percent, bringing it down to Rs 424 crore for the fiscal year ending March 31, 2024.

This marks a substantial improvement from the Rs 582 crore loss reported in the previous fiscal year, FY22-23.

Alongside this impressive loss reduction, Spinny also demonstrated robust top-line growth, with its revenue surging by 25 percent to touch Rs 870.7 crore in FY24. This is a considerable jump from the Rs 696.8 crore revenue recorded in FY23, highlighting the platform's increasing market penetration and customer adoption.

The operating revenue, in particular, saw a healthy increase, climbing to Rs 734.9 crore from Rs 544.2 crore, underscoring the strength of its core business operations.

This dual achievement of cutting losses while accelerating revenue growth is a testament to Spinny's strategic financial management and operational efficiency.

A deep dive into their expenditures reveals a meticulous approach to cost optimization. The company managed to bring down its total expenses to Rs 1301 crore in FY24, a reduction from Rs 1332 crore in the prior fiscal year, even amidst growth. This was largely driven by significant cuts in key areas such as marketing and advertising, which decreased by 22 percent to Rs 290.7 crore from Rs 373.1 crore, and optimized employee benefits and finance costs.

Sachin Gupta, the Chief Executive Officer of Spinny, emphasized the company's laser focus on sustainable growth.

"Our journey in FY24 has been marked by a strong emphasis on improving unit economics and bringing down fixed costs," Gupta stated, reflecting the strategic pillars behind their financial success. This disciplined approach has not only led to a healthier balance sheet but also culminated in a significant milestone: Spinny's consumer business reported positive EBITDA in the fourth quarter of FY23-24, signaling a strong momentum towards overall profitability.

The used-car market in India continues to be a dynamic and competitive landscape, with players like CarTrade Tech, Cars24, and Droom vying for market share.

Spinny's ability to navigate this environment by focusing on customer experience, technological innovation, and financial prudence positions it strongly for future expansion and sustained profitability. The company's impressive FY24 performance underscores its resilience and strategic foresight, setting the stage for an exciting trajectory in the coming years.