Cred’s FY24 revenue surges 66% to ₹2,473 cr, operational loss down by 41%

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Fintech major Cred reported revenue of ₹2,473 crore, a 66 per cent increase on the back of higher product adoption and growth of monetised users, while narrowing operational loss by 41 per cent to ₹609 crore.

Net loss (after expenses on the employee stock ownership plan and taxes) stood at ₹1,644 crore, up by about 22 per cent year-on-year.

The Bengaluru-based platform has increased its monetised user base by 58 per cent, slashed marketing expenses by 36 per cent, and reduced its customer acquisition cost (CaC) by 40 per cent, owing to a larger share of customers joining the platform organically.

At the same time, the company’s monthly transacting users (MTU) grew by 34 per cent to 11.5 million and monthly active users stood at 13 million, for the year.

“Our focus is on creating deepening relationships with our customers and on many things from UPI to Garage and other products that we have launched in the last year. We’ve seen strong traction in revenue and significant improvement in our customer acquisition cost and operating losses,” said Kunal Shah, founder and chief executive officer of Cred.

Cred’s revenue and product

The fintech major attributed 90 per cent of its revenue from three major areas — payment, insurance and lending business.

Cred did not disclose details of its credit business, but noted that the platform focused on longer tenure and larger ticket-size unsecured loans.

“We are focused on longer tenure, lower interest loans, and larger ticket size loans. So our numbers on book size will always be higher than most fintechs, and it will compound the compounding nature of long tenure,” said Shah.

The company has seen growth in Cred Garage, which started last year. The number of vehicles on the platform currently stands at 6 million. The company is exploring more opportunities around the offering, though it did not comment on new features it plans to add.

“The total number of unique customers of credit card and passenger cars has kind of stayed very similar to each other for the longest period of time. The intent is to make that asset easy to manage. All the OEMs seem keen to do something with us,” Shah added.

The company noted that its total payment value surged by 55 per cent to ₹6.87 lakh crore. Over 90 per cent redeemed rewards such as cashback, vouchers, and giveaways each month, the company said.