Spotify India has reported a significant reduction in its net loss for the financial year ending March 2023. According to financial data from business intelligence platform Tofler, the audio streaming giant’s India unit narrowed its net loss by 26 percent to INR 344 crore.

Spotify India LLP, a wholly owned subsidiary of Sweden’s Spotify AB, achieved an 86 percent increase in revenue, reaching INR 167 crore. The company’s expenditure decreased by 9 percent, totaling INR 504 crore. Notably, subscription revenue rose by 66 percent to INR 88 crore, while ad revenue saw an impressive surge of 91 percent to INR 63 crore.

Since its entry into the Indian market in 2019, Spotify has rapidly expanded its presence. As of March 2024, Spotify reported 615 million active users globally, with 239 million premium users and 388 million ad-supported users, making India one of its fastest-growing markets.

In the highly competitive Indian audio streaming sector, Spotify faces competition from JioSaavn, Amazon Prime Music, Google Music, Apple Music, Gaana, and Airtel’s Wynk. To cater to the diverse Indian market, Spotify follows a hybrid ad and subscription-based model, recognizing that much of the music content is commoditized.

While Spotify India’s financial results for FY24 are yet to be filed, the company’s performance in FY23 indicates strong growth and improved financial health, positioning it well for future expansion and competition in the Indian market.