Photo Credit: grayom (Mumbai, where Spotify India is headquartered)
The latest financials reveal Spotify India is struggling to reach profitable status, despite its parent company’s global success.
Spotify India reported a net loss of $16.6 million (₹143 crore) for its financials dated 2023-24 — a 58% decline compared to the previous year. That’s despite its subscription revenue increasing by over 90%, its advertising revenue by 114%, and increased engagement from its 70 million monthly active users.
The Mumbai-headquartered arm of Spotify is classified as a private subsidiary of its foreign parent company. Spotify India’s operating revenue surged 93% to $37.3 million (₹321 crore), driven by growth in both advertising and subscription revenue. Yet it still saw a 58% net loss compared with the previous fiscal year.
The company’s primary business involves providing access to the Spotify platform and services to local users in India. It also sells advertising space and conducts marketing activities in its local market. Spotify India’s total assets increased 76% this year, while partner contributions went up by 29%.
According to Spotify India, the platform enjoys 70 million monthly active users in the region who spend an average of 1.44 hours daily streaming music. They also spend 53 minutes per day listening to podcasts. The audience comprises 63% male and 37% female users, 63% of whom fall within the 25 to 44+ age group. The remaining 37% comprises users aged 16 to 24.
Spotify’s total reach actually gets 59% of its user base from the top eight metro cities, while the remaining 41% is distributed across 7,000 towns. The company declined to comment on its financials.
It’s a sharp contrast in profitability to Spotify’s performance on the global stage, where the company revealed record operating profits this year. The streaming giant’s stock has continued to surge, having reached an all-time high on December 4, surpassing $500 a share.
That success has seen CEO Daniel Ek cashing out a tranche of shares — nearly $100 million in December alone, and over $500 million in total since his first cash-out in July 2023.