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Operating losses were reduced by 41 per cent from Rs 1,024 crore in FY23 to Rs 609 crore in FY24. | Representative Photo: Shutterstock
Credit card bill payments app CRED on Monday reported 66 per cent year-on-year increase in revenue to Rs 2,473 crore in FY24, on the back of growth in monetised members and a drop in user acquisition costs.
Operating losses were reduced by 41 per cent from Rs 1,024 crore in FY23 to Rs 609 crore in FY24, a company statement said.
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“This came on the back of some very exciting sort of pieces of execution that we always had as a thesis, but it’s always good to see that play out in action. The number of members that we monetised grew 58 per cent year-on- year. Our CAC (customer acquisition costs) came down significantly by 40 per cent,” CRED founder Kunal Shah said during a press briefing.
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Total Payment Value (TPV) for the platform surged 55 per cent to Rs 6.87 trillion, while monthly transacting users (MTU) rose by 34 per cent.
“Members used CRED for a wide range of payments beyond credit card bills, with strong adoption of P2P UPI payments. They also expanded adoption of CRED Pay across online merchants, boosting transaction volumes by 254 per cent during the year,” the statement said.
Organic growth contributed to a high-quality user base and dropped customer acquisition costs by 40 per cent, Shah said, adding that 70 per cent of its customer acquisition now comes through organic or referral channels.
The unicorn fintech launched its in-app vehicle management feature–CRED Garage–in September last year.
“We managed to cross close to 4.2 million vehicles in the last financial year and now touching close 6.5 million vehicles on the platform. And it kind of demonstrates the power of the platform coming together where we are squarely focused on an audience segment,” Shah said.
In July 2024, it introduced CRED Money, a tool that enables users to track, analyze, and reflect on their financial behaviour.
The entrepreneur also hinted at new products in the pipeline.
“When you think from a capital investment and capital allocation perspective, there’s a lot of exciting things coming up on the road map. A significant amount of our capital utilization is towards research and development costs, for example, things on products, investments on products that are in the works, and will come out pretty soon,” he said.
Responding to whether CRED plans to go public, Shah said the company’s still in its growth phase and doesn’t intend to list anytime soon.
“We are in year three of our monetisation and the company is not even six years old. We’re going to be six years old in November. I want to restate there’s no plan to go public in any hurry. We’re still growing up. There’s a lot of growing up to do,” he said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 30 2024 | 4:22 PM IST
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