Fintech unicorn Cred is focusing on monetizing more by offering more products to its existing users as its accumulated losses cross 1,279.6 crore in FY22, said founder Kunal Shah.
In the last financial year, the company worked to drive adoption of its products such as Rentpay, Cash and Pay. It also launched new products such as Mint which allows users to lend to other users.
“(Users) are engaging on all these products at different scales and it is growing every month. They are (also) going and exploring more products,” Shah said. “(It) creates both breadth and depth in our relationship.”
The startup, which was valued at around $6.4 billion, magnified its losses by 2.4x 1,279.6 crore in FY22. However, the Bengaluru-based fintech did not reveal its plans to become profitable. “We are only four years old. We made conscious choices to invest towards building the brand, building the community and eventually monetization,” said Shah.
By comparison, Cred’s revenue from operations grew 4.4x 393.6 crore in FY22.
Cred’s member community grew by almost 50% to 11.2 million users in FY22. In calendar year 2022, the company plans to increase this number to 16 million. The startup, which last raised $140 million in Series F round due in June 2022 at over 60% premium, is focused on the country’s top 40 million households. It helps users pay credit card bills, make utility, rent and school fee payments, among other things.
The total expenditure of the company increased by 2.7 times. 1,702.1 crore in FY22. spent over credit 975 crores on marketing and business promotion expenditure, which is more than 57% of its total expenditure.
“Investing on marketing dollars will always have its own reason and logic,” Shah said. Advertisement for Indian Premier League.
However, for the now four-year-old company, “It would be much more appropriate—it doesn’t mean we have to stop. We’ll still continue to build our community and brands,” he said.
company spent 307.6 crore as employee benefit expense, the second highest cost after Marketing during the year. it cost 158.7 crore in payment processing fee and 243.3 crore in other expenses, which includes software and licensing cost 104.9 crores. Cred boasts of high engagement and engagement with over 90% of its members redeeming at least one reward on their app every month.
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