CRED’s FY22 loss more than doubles as co continues chasing growth

CRED turned in another year of ballooning financial losses as the fintech unicorn persisted with an unrelenting focus on scaling up its brand and user base–which it hopes to monetise more effectively.

More than 60% of the company’s total expenses of Rs 1,702 crore in financial year 2021-22—up nearly three times from the year before—went towards marketing and promotions (Rs 975.8 crore). This is slightly more than half of total expenses incurred in FY21.

CRED’s mounting losses come amid a renewed focus on profitability over growth in the startup ecosystem, with the ongoing funding squeeze adding pressure on valuations that had heated up in past years.

CRED, which raced to a $6.4 billion valuation in just four years of inception, posted a loss of Rs 1,279.9 crore for FY22, up from a loss of Rs 524.3 crore in the fiscal year before.

Revenue from operations improved to Rs 393.6 crore from Rs 88.6 crore earlier.

In an interview with VCCircle, Kunal Shah said the company will “make a conscious choice to invest in building the brand, building the community, and eventually get to the monetization direction.”

CRED facilitates credit card, rent, school and utility payments, as well as peer-to-peer lending on its platform.