Unicorn Fintech Company, CRED Accumulates a Total Loss of 1,279 Crores in Fiscal Year 2022
Reports reveal that the fintech company, CRED has recorded a total loss of 1,279 crores in fiscal year 2022.
Here’s more about it.
CRED Accumulates Loss of 1,279 Crores
The Bengaluru-based startup company, CRED founded in 2018 by Kunal Shah who is also the CEO of the company, saw a rapid growth in the past four years with currently about 11.2 million active members in its user base. The unicorn fintech company was also able to achieve a $6.4 billion valuation in the last four years.
However, as per reports state, the company has had a total loss of Rs. 1,279.9 crores in the fiscal year of 2022 from the loss of Rs. 524.3 crores the company had incurred in the previous fiscal year. All the accumulated loss of the company was definitely due to the increase in its marketing cost it had during FY22.
In the fiscal year of 2022, the company had really focused on television advertisements and IPL ads, with the aim to increase the number of members using its platform and also with the aim to outperform its rival companies like Paytm. The company’s television advertisements were starred by sports celebrities like Rahul Dravid, Neeraj Chopra and Ravi Shastri and the Indian actor Jim Sarbh.
The employee bonuses and benefits the company offered to its workers was also another reason for the increase in the company’s total loss.
The founder and CEO, Kunal Shah addressing the incurred loss, spoke in an interview with the VCCircle that the company has made “a conscious choice to invest in building the brand, building the community, and eventually get to the monetization direction.”
Even with the loss, the company, as per reports speak, was also able to generate a total revenue of Rs. 393.6 crores from operations compared to the Rs. 88.6 crores revenue generated by the company last year. The company has also made an income of Rs. 29 crores from its other financial assets making the total revenue generated by the company in the fiscal year of 2022 to come to an amount of Rs. 422 crores.
The members in its user base also rose from the 7.5 million members it had in FY21 to a total of 11.2 million in FY22.
CRED currently offers services like peer to peer lending, credit card facilities, options to pay rent, school and utility bills and also the recently introduced UPI payments service.
