Indian Fintech CRED Soars With $168 Million Earnings Surge


CRED’s Financial Year Ends on a High Note

Indian fintech startup, CRED, has experienced an impressive surge in its operating revenue, growing by 255% to reach $168.1 million in the financial year that ended in March. This substantial increase in earnings can be attributed to the rising adoption of CRED’s lending and commerce offerings among India’s affluent individuals, leading to a total income of about $50 million last year. CRED has also managed to curtail its losses, excluding ESOP cost, by approximately 10%, totaling $125.7 million in the same financial year.

Key Takeaway

CRED, the Indian fintech startup, has reported a significant increase in operating revenue, reaching

68.1 million, driven by the growing acceptance of its lending and commerce solutions among affluent individuals in India.

Prioritizing Talent Acquisition and Retention

CRED acknowledges the importance of hiring and retaining top talent as a fundamental priority for the company. This focus on attracting the best employees directly contributes to an increase in employee benefit expenses. In fact, CRED’s employee stock ownership plan (ESOP) cost surged to approximately $36 million in the financial year ending March.

Diversifying Offerings and Expanding Reach

CRED’s improved financial performance can be attributed to its expanded e-commerce, wealth management, and lending offerings. The startup recently introduced Garage, a vehicle management offering, enabling CRED members to access a range of services, including concierge, parking, insurance, and document management.

The total payment value on CRED’s platform also witnessed a significant surge, increasing by 77% to $52 billion. Moreover, CRED boasts approximately 6 million customers who utilize the app for credit card bill payments, utility bills, and transactions with merchants and friends. Notably, one-third of all credit card payments in India, by volume, are processed through CRED. On average, CRED users engage in over 20 sessions on the app per month, making it the fourth-largest in UPI.

Driving Efficiency and Profitability

CRED has been actively reducing its marketing and business promotion expenses, resulting in a 27% decrease from $117 million in the previous financial year. Moreover, the company has successfully lowered customer acquisition costs.

Founder Kunal Shah expressed his optimism about CRED’s growth trajectory and profitability, attributing the positive outcomes to a focus on rewarding good financial behavior, the introduction of new products and features, and increased member engagement. With its commitment to prudent financial behavior becoming a habit among the top 1%, CRED aims to continue its strong momentum and achieve overall profitability while scaling its revenue.

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