Bengaluru-based B2B automotive marketplace Koovers has delivered a mixed financial performance for FY25, posting strong revenue growth while also reporting higher losses. The company recorded operating revenue of ₹198 crore, a sharp increase from ₹79 crore in FY24. However, its net loss widened to ₹36 crore during the same period, highlighting the costs associated with rapid expansion.
Koovers operates as a digital platform connecting spare parts manufacturers with workshops, dealers, and garages across India. It aims to streamline procurement in the highly fragmented automotive aftermarket industry.
Revenue growth driven by expansion
The company’s revenue growth of nearly 2.5 times was primarily driven by aggressive expansion strategies. Koovers expanded its network of dealers and workshops while strengthening its supply chain to ensure better product availability.
Its core revenue comes from the sale of automotive spare parts and accessories, positioning it as a key player in the B2B automotive ecosystem. The increased adoption of digital procurement solutions in India has also contributed to its rising demand.
Expenses surge impacts profitability
Despite the strong revenue growth, Koovers saw a significant jump in expenses, which affected its bottom line. Total expenditure rose to approximately ₹235 crore in FY25, compared to ₹96 crore in the previous year.
The largest cost component was the procurement of materials, accounting for nearly 79% of total expenses at around ₹186.5 crore. Additionally, the company increased spending on employee benefits, logistics, and marketing to support its scaling operations.
Employee costs doubled to ₹22 crore, while transportation and promotional expenses also increased. These investments, although necessary for growth, contributed to the widening of losses from ₹17 crore in FY24 to ₹36 crore in FY25.
Signs of improving efficiency
Even with rising losses, Koovers showed early signs of improved efficiency. The company reduced its cost-to-revenue ratio, spending ₹1.19 to earn every ₹1 in FY25, compared to ₹1.22 in FY24. This indicates gradual improvement in operational efficiency as the company continues to scale.
Koovers’ FY25 performance reflects a growth-first strategy commonly seen in India’s startup ecosystem. While revenue expansion is strong, achieving profitability will depend on controlling costs and improving margins in the coming years.