Fintech Unicorn OneCard Records INR 183 Cr Loss in FY22 Due to Surge in Advertising Costs

• ByStartupStory     |    March 20, 2023

OneCard’s net loss widens over 5.5X to INR 182.76 Cr in FY22, as expenses grow in line with business growth. However, the fintech unicorn’s operating revenue surged 7.8X to INR 83.78 Cr from INR 10.78 Cr in the previous fiscal year, solely from the sale of services. OneCard collaborates with banks and financial institutions to provide credit cards and other technology-enabled financia solutions.

OneCard’s total income, including other income, saw a 6X growth to INR 97.85 Cr from INR 16.39 Cr in the previous financial year. However, total expenses surged by 5.7X to INR 280.61 Cr in FY22 from INR 49.58 Cr in FY21, primarily due to a significant increase in advertising and promotional expenses.

OneCard’s other expenses, which include rent, insurance, and advertising, among others, accounted for the majority of its expenses. These expenses rose significantly, increasing 6.6 times to INR 235.12 Cr from INR 35.5 Cr in FY21. Advertising and promotional expenses saw a substantial increase of 10.5 times to INR 124.16 Cr in FY22 from INR 11.8 Cr in the previous fiscal year. 

In FY22, OneCard recorded a net loss of INR 182.76 Cr due to a surge in expenses, whereas revenue from operations grew 7.8X to INR 83.78 Cr. Other expenses, such as rent, insurance, and advertising expenses, constituted a major portion of the total expenses, which rose 5.7X to INR 280.61 Cr. OneCard’s co-branded credit cards are offered in partnership with several banks, including South Indian Bank, Federal Bank, and BoB Financial. The fintech startup also offers OneScore, a digital credit score platform that provides free credit score checks.

Last year, OneCard, a Pune-based fintech startup, became a unicorn after raising about $100 million (approximately INR 802 crore) in funding led by Singapore’s Temasek. With a total funding of $227 million and support from Sequoia Capital, GIC, and QED Investors, the startup provides IT-enabled financial solutions and credit cards in partnership with banks such as South Indian Bank and Federal Bank. However, OneCard faces competition from Kodo Card, Karbon Card, Slice, and Uni Card. Recently, the startup reported cyber fraud amounting to INR 21.32 lakh after five fraudsters used the details of Bollywood actors and celebrities to procure OneCard credit cards.

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