cred: Cred’s FY23 revenue more than triples, losses grow marginally


Fintech platform Cred recorded a 252% jump in total income to Rs 1,484 crore in fiscal year 2023 from Rs 422 crore in the previous fiscal year. The company’s revenue stood at Rs 95 crore in FY21.

Losses rose marginally to Rs 1,347 crore from Rs 1,279 crore in FY 2021-22.

Elevate Your Tech Prowess with High-Value Skill Courses

Offering College Course Website
Indian School of Business ISB Professional Certificate in Product Management Visit
Northwestern University Kellogg Post Graduate Certificate in Product Management Visit
Indian School of Business ISB Digital Transformation Visit
Indian School of Business ISB Product Management Visit

In a statement, Cred said that if employee stock option costs are excluded then it has actually managed to reduce losses to Rs 1,047 crore in FY23 from Rs 1,167 crore in the previous fiscal year.

While the company’s revenues rose significantly, expenses shot up, too. In FY23, the Bengaluru headquartered fintech reported total expenses of Rs 2,831 crore, a spike of 66% from the Rs 1,702 crore payout a year earlier. Most of this was driven by a jump in payment processing charges and employee benefit expenses. Cred has managed to rein in its marketing expenses.

Also read | Cred launches vehicle management platform Garage, makes first move into motor insurance distribution

Cred’s standalone operational revenue stood at Rs 1,297 crore, while corporate expense management platform Happay’s revenue stood at Rs 103 crore. Cred had acquired Happay in 2021, valuing the company at around $180 million then.

Discover the stories of your interest

Marketing and promotional expenses fell 26.8% to Rs 713 crore from Rs 975 crore in the previous year. But payment processing charges—the price it incurs in settling a payment transaction—shot up 354% to Rs 704 crore from Rs 155 crore a year prior.This was a direct result of its total payment value almost doubling to Rs 4.4 lakh crore in fiscal year 2023 from Rs 2.5 lakh crore in 2022.

“Cred is trying to do more direct integrations with banks to reduce this category of expenses and eventually the target is to make enough revenue from other business streams to balance out this major cost item,” said a senior fintech executive in the know of things.

Also read | Kunal Shah’s inhouse NBFC ends first year with a small profit

Cred gets almost 90% of its revenue from its personal loan product Cred Cash, rent payments done through Cred Max, and its insurance offerings.

“Our focus on rewarding good behaviour strengthened growth momentum in FY22-23, with new products and features contributing to higher engagement with members. Five years since launch we believe that Cred is becoming a habit for the top 1%, and (that) has resulted in a strong financial performance,” said Kunal Shah, founder of Cred.

The Peak XV and Ribbit Capital backed startup said that one third of total credit card bill payments by value now happen on the Cred platform. On average, a user has more than 20 sessions on the Cred app every month, showing increasing engagement with the platform, the company said in a statement.

Cred believes that with RuPay credit cards opening up on UPI, more and more users will start using UPI for their credit card payments. This will eventually open a large use case for credit card users. Additionally, given the rate at which credit cards are being issued, the segment should grow three times over the next three years, said the fintech executive quoted above.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

Source link

Denial of responsibility! Planetconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment