User monetization is the next phase for Cred’s growth: Kunal Shah

• ByStartupStory     |    February 10, 2023

fintech Unicorn Cred’s founder, Kunal Shah, stated during an interaction that the company is concentrating on enhancing monetisation from its current consumers because its losses during the most recent financial year which is totaled over ₹1279.6 crore. 

The company’s next phase is to boost the amount of cash it makes from its current customers by giving them more items, all the while broadening its community. During the previous fiscal year, the company endeavored to boost the use of its current products, including RentPay, Cash, and Pay, among others. Additionally, new products were released, such as Mint, which lets users lend money to other users. 

“Costumers are integrating with all of these services on various levels, and it is growing wider every month. Additionally, they are exploring additional goods “Shah stated. “This gives our relationship both scope and depth.” 

In previous financial year, the startup, whose final estimated valuation was $6.4 billion, increased its losses 2.4 times to ₹1279.6 crore. The Bengaluru-based fintech did not, however, emphasised its goals for financial success. Shah also said, “We had just turned four. We consciously decide to invest in developing the brand, the community, and eventually moving in the path of monetization.” 

In contrast, Cred’s operating revenue increased at a faster rate, by 4.4X, to ₹393.6 crore throughout the year.

In FY22, Cred’s member base increased by over 50% to 11.2 million people. This figure was increased by the corporation to 16 million in 2022. The top 40 million households in the nation are the target market for the fintech unicorn, which most recently expanded $140 million in a Series F in June 2022 at a premium of more than 60%. It enables users to pay for utilities, rent, school fees, and credit card balances, among other things. 

In financial year 2022, the company’s overall expenses increased 2.7 times, reaching ₹1702.1 crore. Over 975.8 crore of Cred’s total spending, or more over 57%, were spent on business and marketing promotion costs.

According to Shah, The company will invest in order to develop and maintain its brand, also, “Investments on advertising money will always contain its own purpose and rationale,” he added further. Cred has spent a lot of money on marketing initiatives throughout the years, notably its much-discussed advertising for the Indian Premier League.

For the company, which has been around for four years, “it will be much more reasonable- doesn’t mean we have to quit,” We will continue to develop our brands and communities, he emphasized. 

Employee benefits were the second-largest cost for the company that year, after marketing, at ₹307.6 crore. It spent  ₹158.7 crore on payment processing fees and ₹243.3 crore on other costs, including ₹104.9 crore on software and licencing. Cred asserts that its members are highly engaged and loyal, with over 90% of them using its app to redeem at least one prize each month.

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