Koovers is a B2B marketplace based in Bengaluru that deals in automotive spare parts. Koovers has demonstrated one year of rapid top-line growth and major financial changes throughout the fiscal year that ended in March 2025. The recent financial reports that have been obtained at the Registrar of Companies indicate that the company has experienced a spectacular increase in its operating scale, with revenue increasing and comparing to the past fiscal 2.5X.

This was a high cost to grow as the net losses of the company doubled twice in the same year. This performance shows the difficulties of expanding a tech-based distribution system into the highly fragmented Indian automotive aftermarket, particularly when the company was completely acquired by the industrial and automotive giant Schaeffler India in 2023.

Operating revenue and finance

The company’s operating revenue was the headline figure of the fiscal year 2025, as the company increased to ₹198 crore. This is a huge improvement compared to the ₹79 crore in the 2024 fiscal year. This development was largely driven by the strategic increase in the number of dealers of Koovers and increased penetration into independent auto workshops around the nation.

Since their launch in 2015 by their founders Rajesh Krishna, Sandeep Begur, Kanthararaj Urs, Vinayak YB, and S Prem Kumar, the platform has been trying to simplify the car spare part and accessories procurement process through an application-based platform. In FY25, sales of these automotive products were the only source of revenue in the company, renewing its dedicated interest in the B2B trade in spare parts.

Although the revenue trend was spectacular, the price of such scale became the hallmark of the company’s balance sheet. Total costs of the Bengaluru-based company increased by 145% to ₹235 crores in FY25 compared to ₹96 crores last year. The largest part of this spending was on the cost of materials, and this is the major cost centre of any distributor of spare parts.

This particular expense increased 2.5x to ₹186.5 crore, which was close to 79% of the total company expenditure. This incremental growth is based on revenue, which implies that even though the number of goods sold went up tremendously, the company was exposed to massive procurement forces in order to meet the demand.

In addition to the direct cost of goods, other overheads incurred during operations also increased substantially as the company expanded its footprint. The expenses on employee benefits were increased by two times in the year to ₹22 crore, since more employees were employed to handle the increased operations and the dealer relations.

Outreach and logistics also required additional capital, where transportation expenses increased to ₹8 crore and marketing expenses to ₹5 crore during the fiscal year. The finance costs of the company sharply ranged to ₹6 crore, which pointed towards increased dependence on capital or credit as a means to continue the fast growth process.

Financial indicators and competitive landscape

The difference between the increase in revenue generated and the explosion in the cost has caused the net losses of the company to increase more than twice. Koovers recorded a loss of ₹36 crore in FY25, which is a substantial increase compared to the loss of ₹17 crore recorded in FY24. These increasing absolute losses, though, are accompanied by signs of a recovery in the efficiency of the operations as measured by the unit economics of the company.

Koovers incurred ₹1.19 to earn a single rupee of operating income in FY 25, a slight improvement on ₹1.22 spent on every rupee of operating income in the previous financial year. Other financial indicators also reflected a technical improvement in the middle of the loss. Return on Capital Employed (ROCE) and EBITDA margin of the company improved to -13.13% and -56.88%, respectively. 

Although these values are not positive, the fact that the trend is upwards means that the management is improving in terms of managing its assets and core operations efficiently. Koovers had current assets of ₹51 crore as of March 2025, but the company has a fairly minimal cash position, with a bank balance of about ₹50 lakh at the end of the fiscal year.

This journey of Koovers received a major twist when, in August 2023, Schaeffler India purchased the company in a 100% buyout at an approximate cost of ₹142.4 crore. This purchase gave early-stage investors such as Venture Catalysts and Inflection Point Ventures an exit, with the latter reporting a 47% internal rate of return on the transaction.

As a subsidiary, Koovers is a digital representation of the Schaeffer aftermarket that competes in a saturated environment with other platforms like TyrePlex, Boodmo, and Partnr. The emphasis in the hands of Schaeffer seems to be on the utilization of the established network of dark stores and hubs in maximizing the optimal product mix and channel efficiency.

Conclusion

Koovers has been in an extremely high-octane growth mode in the fiscal year 2025, with a huge increase in revenues and, as a result, in market coverage. The ₹36 crore losses are doubling as a reminder that a burning rate is usually needed to gain market share in the digital B2B automotive enterprise. The industry will be keen to determine whether Koovers can continue its top-line momentum as it enters the year 2026 with a viable, profitable business model.