Koovers Growth as a B2B Marketplace for Automotive Spare Parts

Koovers, recognised as a significant B2B marketplace for automotive spare parts, demonstrated impressive growth in the fiscal year concluding March 2025. The operating revenue saw an increase of over 2X, attributed to the expansion of its dealer network. The organisation, which was acquired by Schaeffler India, continued to enhance its operations; however, its losses more than doubled during the same period due to rising costs.

In FY25, Koovers’ operating revenue surged 2.5X to Rs 198 crore from Rs 79 crore in FY24, reflecting data collected from the financial statements filed with the Registrar of Companies (RoC). Established in 2015 in Bengaluru by Rajesh Krishna, Sandeep Begur, Kantharaj Urs, Vinayak YB, and S Prem Kumar, Koovers operates as an app-based platform focused on providing car spare parts and accessories. The sale of these products constituted the company’s primary income stream.

In 2023, Koovers transitioned into full ownership under Schaeffler India with a 100% acquisition. The costs associated with materials remained the largest expense category for the spare parts firm, accounting for 79% of total expenditures. This material cost escalated to Rs 186.5 crore in FY25, a notable rise from Rs 75 crore in FY24.

Operational Costs and Employee Expenses

Employee benefits also saw a substantial increase, doubling to Rs 22 crore throughout the year. Regarding other operating expenses, transportation costs reached Rs 8 crore, while marketing expenses were recorded at Rs 5 crore in FY25. The finance costs experienced a significant hike, amounting to Rs 6 crore. Overall, the total expenses of the firm surged by 145% to Rs 235 crore in FY25, compared to Rs 96 crore in FY24.

Financial Performance

As expenditures outpaced revenue, the company’s losses more than doubled, escalating to Rs 36 crore in FY25 from Rs 17 crore in FY24. Key financial metrics such as the Return on Capital Employed (ROCE) and EBITDA margin showed improvements, reaching -13.13% and -56.88% respectively. Per unit analysis revealed that Koovers spent Rs 1.19 to generate a rupee of operating revenue in FY25, a slight improvement from Rs 1.22 in FY24.

At the end of the fiscal period, Koovers reported current assets amounting to Rs 51 crore, with cash and bank balances totalling Rs 50 lakh.

Market Position and Competition

In the competitive landscape, Koovers faces challenges from other players such as TyrePlex, Boodmo, and Partnr. The 100% acquisition by Schaeffler was likely motivated by a robust network of dealers and potential sourcing relationships. This acquisition might lead to a more focused approach in areas aligning with Schaeffler’s interests, explaining the accelerated revenue growth against rising losses.

Maintaining its original name for the time being signals a degree of operational freedom for Koovers, though uncertainties remain regarding its long-term independence. The presence of a B2B platform initiated by an associated industry competitor poses a unique challenge, and monitoring Koovers’ journey will be of significant interest.