CRED's revenue soars 66% to ₹2,473 crore in FY24
CRED, a well-known fintech platform, has seen a whopping 66% jump in its total revenue for FY24. The company's earnings grew from ₹1,484 crore in FY23 to ₹2,473 crore this year. At the same time, CRED managed to cut down its operating losses by 41%, dropping from ₹1,024 crore to ₹609 crore. This financial turnaround is credited to the company's smart strategy of ramping up its revenue without racking up additional costs.
CRED's growth strategy and future plans
Kunal Shah, the CEO of CRED, has given a shoutout to the company's smart use of "operating leverage" in its growth playbook. Basically, this means raking in more money without having to hire more people or splurge on marketing. Plus, Shah spilled the beans that CRED is developing new products for the next few quarters in order to boost monetization and make it easier for users to engage with financial services.
User engagement and revenue generation
CRED has witnessed a solid uptick in member engagement, with 35% of its users now using three or more products. Additionally, a whopping 90% of users are cashing in on rewards every month. The company's been raking in more revenue from its current users while also bringing in new paying members at lightning speed. This game plan has resulted in a staggering 20x jump in the contribution margin this year, along with a big drop in operating losses.
Expansion and cost reduction
CRED's user base is booming and a huge number of those new customers came through organic channels. More than 75% of its new users hopped on board organically, which led to a whopping 40% cut in customer acquisition costs (CAC). Plus, there's been a massive surge in the use of CRED Pay with online merchants, with transaction volumes soaring by 254% over the past year.
Product diversification and future prospects
CRED's new offering, CRED Garage, has really taken off, with 4.2 million vehicles parked on the platform for various services during FY 2023-24. Shah shares his optimism about the company's latest wealth tech product, CRED Money. He mentioned that while they have plans to roll out more products in the future, they will be careful about expanding their workforce.
