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Staggering Revenue Growth
CRED, a prominent fintech startup, has witnessed an impressive 255% growth in its operating revenue, reaching $168.1 million for the financial year ending in March. This surge in revenue is attributed to the increasing adoption of its lending and commerce services by India’s affluent population.
Previous Financial Performance
To put this growth into perspective, CRED’s total income was approximately $50 million in the financial year ending March of the previous year and a mere $11.4 million the year before that.
Loss Reduction and Talent Acquisition
Despite its rapid growth, CRED has managed to reduce its losses by about 10%, amounting to $125.7 million, excluding the ESOP cost. The company, backed by notable investors such as GIC, Tiger Global, and Insight Partners, emphasizes the importance of hiring and retaining top talent. This focus has led to a rise in employee benefit expenses, with its ESOP cost reaching around $36 million for the financial year ending in March.
Diverse Offerings and Platform Growth
CRED’s financial improvement is also a result of its expansion in e-commerce, wealth management, and lending services. Recently, the company introduced “Garage,” a vehicle management service that offers a range of features, including concierge, parking, and insurance. The total payment value on CRED’s platform has also seen a significant increase of 77%, totaling $52 billion. By the end of March, the company reported a cash and bank balance of about $250 million.
User Engagement and Transactions
The number of monthly transacting users on CRED’s platform grew by over 50% during the financial year. The platform enables its members to pay credit card bills, utility bills, and conduct transactions with merchants and friends. Impressively, CRED processes one-third of all credit card payments in India by volume. An average CRED user engages with the app in over 20 sessions monthly.
Marketing and Customer Acquisition
CRED has been successful in reducing its marketing and business promotion expenses by 27%, bringing it down from $117 million in the previous financial year. The company has also managed to decrease its customer acquisition cost. Kunal Shah, the Founder of CRED, mentioned, “Our focus on rewarding good behavior strengthened growth momentum in FY 22-23, with new products and features contributing to higher engagement with members.”
Five years since its inception, CRED has established itself as a habitual choice for the top 1% of India’s affluent population. The company’s strong financial performance is a testament to its commitment to promoting prudent financial behavior. With its continued momentum, CRED aims to achieve overall profitability and significant revenue scale in the coming years.
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