CRED, a credit card bill payment application, announced a remarkable 66 percent year-on-year increase in revenue, reaching Rs 2,473 crore for FY24. This growth was attributed to an increase in monetised members and a reduction in user acquisition costs.
The company also reported a significant decrease in operating losses, which fell by 41 percent from Rs 1,024 crore in FY23 to Rs 609 crore in FY24, according to a company statement. Kunal Shah, the founder of CRED, highlighted the successful execution of their strategic plans during a press briefing.
He noted that the number of monetised members grew by 58 percent year-on-year, while customer acquisition costs decreased by 40 percent. The platform’s Total Payment Value (TPV) surged by 55 percent, amounting to Rs 6.87 lakh crore, and the monthly transacting users (MTU) increased by 34 percent.
The statement further indicated that members utilized CRED for various payment types beyond credit card bills, with a notable rise in P2P UPI payments. Additionally, the adoption of CRED Pay among online merchants led to a 254 percent increase in transaction volumes over the year. Shah emphasized that organic growth has fostered a high-quality user base, with 70 percent of customer acquisition now derived from organic or referral channels.
A considerable portion of our capital allocation is directed towards research and development expenses, including initiatives related to product development and investments in upcoming products that are expected to launch shortly, he stated.
In response to a question regarding CRED’s potential public offering, Shah indicated that the company remains in its growth phase and does not plan to pursue a listing in the near future.
