Fintech platform CRED reported a significant 256% revenue surge in its fiscal year 2023 (FY23), reaching Rs. 1,400 crore ($188 million) from Rs. 393 crore ($53 million) in FY22, despite a modest 5% increase in losses. The robust growth has been attributed to new product offerings that have enhanced member engagement and significantly slashed customer acquisition costs.
According to InvestingPro's real-time metrics, CRED's revenue growth for the last quarter of 2023 was 10.67%, indicating a consistent upward trend. The company's market cap stands at a robust 439.37M USD, demonstrating the scale and reach of its operations.
The major sources of the company's revenue include CRED Cash, which disbursed loans amounting to Rs. 12,000 crore ($1.6 billion), and CRED Garage, the company's recent venture into vehicle management. Additionally, CRED is making strides in increasing its market share in UPI payments.
InvestingPro Tips indicate that CRED's revenue growth has been accelerating, and the company has been consistently increasing earnings per share. This suggests a strong financial performance and potential for future growth.
While marketing expenses have seen a decline, overall expenses have surged due to increased employee costs. These expenses have been cushioned by the company's substantial cash reserves of Rs. 2,050 crore ($276 million). InvestingPro data shows that the company's cash flows can sufficiently cover interest payments, further solidifying its financial stability.
The platform has managed to attract around 12 million users, primarily through its strategy of rewarding credit card bill payments. The number of monthly transacting users grew by over 58%, indicating a strong user engagement.
CRED secured $140 million funding and was valued at $6.4 billion last year, with the top 1% of its users becoming habitual users of its services. This valuation and user growth continue to solidify CRED's position in the fintech landscape.
In comparison, MobiKwik, another player in the fintech space, reported a second straight PAT positive quarter on Thursday.
The strong financial performance of CRED in FY23 demonstrates the potential for continued growth and expansion in the fintech sector. For more insights and tips about investing in companies like CRED, consider checking out InvestingPro, which offers a wealth of additional tips and real-time metrics.
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