CRED revenue jumped 4.4x in FY22, but spending weighs heavy: report

fintech unicorn CreditOperating revenue in the past fiscal year reportedly jumped 341.6%, while marketing spending continues to eat into its results.

According Coachciting internal documents.

CRED’s loss widened 2.4 times from a year earlier to Rs 1,279 crore, driven by high expenses.

Spending rose 2.7 times to Rs 1,702 crore, with marketing accounting for the lion’s share of its costs, the report added.

CRED recently launched Scan and Pay to drive growth. | Image source: CRED

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CRED has not yet filed its financial statements with the Registrar of Companies. The startup declined to comment on the veracity of Coachreport.

However, marketing expenses have historically eaten away at CRED’s results and were largely responsible for its losses. In FY22, the company’s marketing expenditure was Rs 973 crore, 3 times higher than a year ago.

The Bengaluru-based startup’s non-operating income was Rs 29 crore from its financial assets, according to the report.

In an effort to drive growth, CRED recently launched Scan and Pay to allow its users to pay through UPI and earn cashback and rewards in the process. Although popular for credit card payments, most revenue is generated by CRED Mint, its P2P lending service.

CRED recently invested around $10 million to buy a minority stake in its P2P lending partner, LiquiLoans.

The startup has raised $600 million in funding from investors including Tiger Global, DST Global, Falcon Edge, and Insight Partners.

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