Spinny, a prominent player in the used car market, has made notable financial strides in FY24, showing a solid revenue increase and substantial reduction in losses. The company reported a 14.3% rise in operational revenue, alongside a 28% decline in its losses, underscoring its focused growth and operational efficiency.
According to the firm’s filings with the Registrar of Companies, Spinny’s revenue from operations climbed to Rs 3,725.02 crore in FY24, up from Rs 3,259.78 crore in FY23. This growth is largely attributed to vehicle sales, along with added services like registration, insurance facilitation, and platform fees. Notably, in FY23, Spinny transitioned to a cash-and-carry sales approach, which led to higher revenue visibility by including full vehicle sale prices rather than solely marketplace commissions. Consequently, Spinny’s revenue now reflects these sale prices, with the purchase cost of stock vehicles categorized under expenses.
Additional income from interest and rentals totaled Rs 96.84 crore, bringing Spinny’s overall revenue to over Rs 3,800 crore, although this represented a 19.9% dip as the company hasn’t raised capital since November 2021. Spinny’s vertically integrated business model handles every aspect of the car sales process, from inspections to refurbishment and documentation, reinforcing its unique full-stack approach.
For FY24, Spinny’s stock-in-trade expenses reached Rs 3,495.21 crore, up by 7.8%. Employee costs remained steady at Rs 391.72 crore, while finance costs grew 33% to Rs 90.12 crore. Depreciation and amortization also saw a 20.3% increase, reaching Rs 62.07 crore. Overall, Spinny’s total expenses rose by a modest 5%, totaling Rs 4,409 crore.
Supported by Tiger Global, Spinny cut its net loss by 28% to Rs 590.37 crore. Its Return on Capital Employed (ROCE) and EBITDA margin stood at -31.22% and -11.38%, respectively, with an expenditure of Rs 1.18 for every rupee earned in operational revenue for FY24.
Headquartered in Gurugram, Spinny competes with industry giants like Cars24, CarDekho, and CarTrade-owned OLX Autos. Spinny has amassed around $500 million in funding from backers including Tiger Global, General Catalyst, and Elevation Capital, positioning Tiger Global as its primary stakeholder.