Mumbai, Feb 27 : Electric vehicle maker Kinetic Green faced a major financial setback in FY24, with its losses widening 11 times to Rs 77 crore as compared to the Rs 7 crore in the previous year (FY23).
The biggest contributor to its rising losses was a massive jump in advertising expenses, which surged 8.2 times to Rs 58 crore in FY24.
Additionally, employee benefit costs increased by 52.4 per cent, further straining the company’s finances.
Although procurement remains Kinetic Green’s largest cost, accounting for 62 per cent of total spending, this cost actually declined by 5.4 per cent to Rs 229 crore, as per its financials.
Other expenses, including finance, transportation, legal, and travel costs, pushed the total expenditure up by 19 per cent to Rs 369 crore, compared to Rs 310 crore in FY23.
According to its consolidated financial statement, Kinetic Green’s revenue from operations also dropped to Rs 291 crore in FY24 from Rs 301 crore in FY23.
The Pune-based company’s EBITDA margin stood at (-)20.55 per cent, and it spent Rs 1.27 to earn every rupee in revenue.
As per reports, these figures highlight the deep financial challenges faced by the company, which currently holds about 1 per cent of the electric two-wheeler market.
By the end of FY24, the company had current assets worth Rs 169 crore, including Rs 2.3 crore in cash and bank balance.
Kinetic Green has raised a total of $27 million in funding so far, with $25 million coming from Greater Pacific Capital, which holds a 5.6 per cent stake in the company.
The remaining majority share of 91.7 per cent is held by co-founders Sulajja Firodia Motwani and Ritesh Ramesh Mantri.
Reports suggest that the startup will need to focus on improving operational efficiency and boosting revenue in the coming years as its position in the market is still weak while the electric two-wheeler segment remains strong in India. (IANS)