Bengaluru-based B2B automotive marketplace Koovers reported robust top-line growth in FY25, with operating revenue rising to ₹198 crore from ₹79 crore a year earlier, even as losses widened to ₹36 crore amid heavy spending to scale its network and supply chain.
Business model and market context
Koovers operates a digital marketplace that connects spare-parts manufacturers with workshops, dealers and independent garages across India. The platform targets the fragmented automotive aftermarket, where digital procurement solutions are gaining traction as workshops seek faster, more reliable access to components and accessories.
Drivers of revenue growth
The company’s near 2.5x revenue increase was driven by an aggressive expansion of its dealer and workshop network and deliberate strengthening of inventory and logistics capabilities to improve product availability. Core revenue stems from the sale of automotive spare parts and accessories, positioning Koovers as a growing participant in the B2B auto-parts ecosystem.
Rising expenses and impact on profitability
Growth came at a cost: total expenditure jumped to about ₹235 crore in FY25 from ₹96 crore in FY24. The largest spend was on procurement of materials, which accounted for roughly 79% of expenses (around ₹186.5 crore).
Other major cost increases included employee benefits, transportation and marketing. Employee costs doubled to ₹22 crore, while logistics and promotional outlays also rose as the company invested to capture market share. These higher operating expenses widened the net loss from ₹17 crore in FY24 to ₹36 crore in FY25.
Early signs of efficiency improvement
Despite increasing losses, Koovers reported marginal improvement in operational efficiency. Its cost-to-revenue ratio improved to ₹1.19 spent for every ₹1 of revenue in FY25, compared with ₹1.22 in FY24, suggesting the company is beginning to extract better leverage from its scale.
Outlook
Koovers’ FY25 results reflect a growth-first strategy commonly pursued by Indian startups aiming to build distribution and market presence quickly. Sustained path to profitability will depend on the company’s ability to control procurement and logistics costs, improve margins on parts sales, and convert network expansion into durable, higher-margin revenue streams.
