Fintech Startup CRED Expenses Increase 492% In FY20

CRED, a fintech startup, posted operating revenue of just 52 lakh in the fiscal year ended March 31, 2020. 

The startup also generated Rs 17.56 Cr income from interest on fixed deposits and current investments, making CRED’s total income for the year to a little over INR 18 Cr.

This is a 497% year-on-year (YoY) increase from FY19, where the total income stood at INR 3.03 Cr with zero income from operations.

On the expenses side, during FY20, CRED’s expenses increased 492% from FY19. The company’s total expenses stood at INR 378.39 Cr, a 492% increase from Rs 63.90 Cr in FY19.

Breaking down the expenses, direct costs increased by 450% to INR 59.14 Cr, while employee benefit expenses increased by 327% to INR 72.51 Cr.

CRED’s finance costs increased from zero to INR 1.24 Cr and other expenses, which includes the company’s spending on rent, fuel, conveyance, legal and advertising expenses, among others, increased by 597% to INR 244.45 Cr. 

On a unit level, the fintech startup spent Rs 726.7 to earn one rupee of operating revenue during the fiscal ended in March 2020. 

CRED- Pay Your Credit Card Bills & Earn Rewards

Founded by Kunal Shah in 2018, CRED offers rewards for paying credit card bills. Members are only allowed once their credit score has been screened.

With 3 million CRED members, the startup has added over 10 lakh users on the mobile application in the last two years and new products as well.

The app has also launched a CRED Store marketplace, CRED Pay and CRED Rent Pay.

Using the CRED Store marketplace, consumers can buy products from Indian and international D2C brands as well as FMCG companies.

In earlier 2020, CRED launched CRED Rent Pay, enabling users to pay their monthly rent through credit card. 

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