 "Fintech firm CRED's losses widen 5% to Rs 1,357 cr in FY23; income up 251%")
Fintech platform CRED continued to report loss, it reported a net loss of Rs 1,347 crore on a consolidated basis in FY23, from Rs 1,279.5 crore in the previous financial year.
The Bengaluru-based fintech’s total income grew 3.5 times from Rs 422.5 crore in FY22 to Rs 1,484.6 crore in FY23. The company reported Rs 1,400.6 crore in revenue from operations in FY23, up from Rs 393.5 crore in the previous financial year.
One of the reasons for the rising loss was the increase in expenses. CRED’s total expenses grew 66 per cent to Rs 2831.9 crore in FY23 from Rs 1702.1 crore in FY22.
“Five years since launch, we believe that CRED - and prudent financial behaviour - are becoming a habit for the top 1 per cent. Our focus remains on rewarding the creditworthy with more products that improve their lives and lifestyles,” said Kunal Shah, founder at CRED.
The company has trimmed its marketing and business promotion expenses. The company spent Rs 713.4 crore in FY23, a 26.8 per cent reduction from Rs 975.7 crore in FY22 on marketing-related activities.
“We strengthened the platform with more touchpoints for members to engage with CRED at a higher frequency in FY22-23. This resulted in significantly higher engagement that created monetization opportunities while reducing the cost of attracting and serving members,” the company said in a statement.
The company said it had recorded a 77 per cent increase in TPV (total payment value) to Rs 4.4 trillion in FY23 from Rs 2.5 trillion in FY22. It added that the firm’s customer acquisition costs were down 80 per cent compared to five years ago when the company began operations.
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The company is valued at $6.4 billion as of June 2023, per data from market intelligence platform Tracxn. The company has raised $1.04 billion to date.
Last month, the company ventured into the ‘vehicle management’ segment named CRED garage.