Spotify India doubles revenue in FY24, narrows losses by 58%

Spotify India
Spotify India doubles revenue in FY24, narrows losses by 58%

Spotify India has reported strong growth in revenue for the fiscal year 2023-24 (FY24). The company’s revenue from operations increased by 92.6% to ₹321.3 crore, compared to ₹166.8 crore in FY23.

Ad Revenue Grows by 114%

Spotify’s advertisement revenue rose 114% in FY24, reaching ₹135.3 crore compared to ₹63.2 crore the previous year. Ads have become a key part of Spotify’s revenue, with the platform offering ad space through its Direct and Ad Manager tools.

The platform’s subscription revenue also saw a big jump, growing 90.6% to ₹167.8 crore in FY24 from ₹88 crore in FY23. This shows that more people are subscribing to Spotify’s paid plans, likely due to its efforts to offer localized content and affordable options.

Despite the growth in revenue, Spotify’s spending on advertising and marketing remains higher. The company spent ₹386.8 crore on these activities in FY24, up 4.2% from ₹371.2 crore in FY23. This means Spotify’s marketing costs are about 20% higher than its total revenue, as it focuses on growing its user base.

Losses Reduce by 58%

Spotify India has managed to cut its losses by 58%, reducing them from ₹343.7 crore in FY23 to ₹143.3 crore in FY24. This shows the company is improving its financial position while growing its business.

India’s Role in Spotify’s Growth

India has become an important market for Spotify since it launched there in 2019. The platform is investing in local music, podcasts, and advertising. Globally, Spotify had 615 million active users as of March 2024, and India is one of the fastest-growing regions.

Spotify also earns money through services like content licensing, consulting, and marketing activities, which contribute to its overall business.

In its annual report, Spotify said:

“In 2024 and beyond, Spotify in India will remain focused on supporting artists locally and globally—especially in the worlds of film and Indian pop music—while helping podcasters create and earn more effectively.”

Spotify’s investments in India show its long-term focus on building a strong user base and supporting creators, even if profitability remains a challenge for now.

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