New Delhi, Nov 8 (SocialNews.XYZ) Used car retailing platform Spinny’s losses swelled 67.3 per cent to Rs 820 crore in FY23 from Rs 490 crore in FY23.
The advertising-cum-promotion, information technology, legal-professional, and other overheads pushed the overall expenditure to Rs 4,202 crore in FY23, reports Entrackr.
Tiger Global-backed Spinny’s gross revenue surged 30 times to Rs 3,262 crore in FY23 from Rs 109 crore in FY22, according to its financial statements with the Registrar of Companies (RoC).
The revenue surge is due to the cash and carry model.
Car sales accounted for 95 per cent of the total gross operating revenue at Rs 3,105 crore in FY23. The remaining revenue came from services, including commissions on car sales and financial services, according to the report.
In 2021, Spinny announced the closure of a $283 million funding from new and existing investors, taking its valuation to $1.8 billion and becoming another unicorn.
In August, the platform laid off nearly 300 employees in a cost-cutting exercise, hitting Truebil and Spinny Max staffers the hardest as the two divisions merged into the main platform.
"We have witnessed a sharp uptick in demand for reliable, budget-friendly cars as most people have resumed work from the office. By splitting our inventory of cars across different brand platforms, we were sometimes unable to offer enough options to such customers. With this consolidation, we should be able to meet the needs of these customers well," the company had said in a statement.