Spotify India Cuts Losses By 58%, Revenue Nearly Doubles

Spotify India, the Indian arm of the global audio streaming platform, has reduced its net loss by 58 per cent to Rs 143 crore in the financial year 2023-24, compared to Rs 343 crore in the previous fiscal, as per financial details shared by Tofler.

The company’s operating revenue surged by an impressive 93 per cent, reaching Rs 321 crore from Rs 166 crore in FY23, fuelled by substantial growth in both subscription and advertising revenues. Subscription revenue rose by 90 per cent to Rs 167 crore, while advertising revenue increased by 114 per cent to Rs 135 crore during the year.

Operating expenses declined marginally by 2.4 per cent to Rs 492 crore from Rs 504 crore. However, advertisement and marketing expenses rose by 4 per cent to Rs 386 crore, and personnel expenses grew by 35 per cent to Rs 85 crore, reflecting investments in talent and promotional activities.

Spotify India operates as a limited liability partnership between Spotify AB (holding 99.99 per cent) and Spotify Ltd (holding 0.01 per cent), with its ultimate parent company, Spotify Technology S.A., based in Luxembourg. The entity’s primary operations include offering access to Spotify’s platform, selling advertising space, and executing marketing activities in the Indian market.

According to Spotify India’s 2024 advertising deck, the platform boasts 70 million monthly active users who stream music for an average of 1.44 hours daily. Podcast listeners spend 53 minutes per day on the platform. Of its total audience, 59 per cent resides in the top eight metro cities, while the remaining 41 per cent comes from over 7,000 towns across the country.

The platform’s demographic profile shows 63 per cent of users are male, and 37 per cent are female. Age-wise, 63 per cent of users fall within the 25 to 44-plus bracket, while the 16 to 24 age group accounts for 37 per cent.

Spotify India’s total assets rose by 76 per cent to Rs 850 crore, and cash and cash equivalents more than doubled, surging by 132 per cent to Rs 599 crore. Partner contributions increased by 29 per cent to Rs 1,818 crore, indicating continued financial support from its parent entities.