Fintech unicorn Cred is ramping up its investments in research and development (R&D) as it looks to expand its product offerings and build on its strong revenue performance in FY24. The company, which provides a credit card management platform and rewards for users, saw a notable 66% increase in revenue during the fiscal year, alongside a 41% reduction in operating losses.
Founder and CEO Kunal Shah emphasized that Cred's focus will remain on improving product quality, especially as the company looks to capture a larger share of the market. He explained that the fintech sector is competitive, and users have limited patience for subpar products. "We are in a market with established revenue and profit pools. But if we don't develop high-quality products, users with low tolerance will quickly move on," said Shah
Cred's core business model revolves around offering financial services to affluent Indian consumers, rewarding them for paying bills on time. Shah pointed out that the company plans to allocate significant resources towards R&D in the coming months to ensure it remains competitive and meets evolving customer needs.
While Shah did not reveal specific details about the new products Cred plans to launch, he noted that the focus will be on enhancing user engagement and lifestyle, with a broader goal of improving their financial wellbeing. A third of Cred's users currently pay for premium services, and the company aims to expand this offering while maintaining its reputation for high-quality services.
Cred’s financial performance has improved significantly in FY24, with the company reducing its operating losses from ₹1,024 crore in FY23 to ₹609 crore. This is a positive sign, especially as investors are increasingly prioritizing fintech companies that are on a path toward profitability. The company's revenue, which surged 66% to ₹1,247 crore in FY24, underscores its growth trajectory.
Alongside its credit card management services, Cred has been diversifying its offerings. The company recently launched several new products, including *Cred Garage* for vehicle services, which has seen rapid growth, and *Cred Travel, which facilitates premium travel bookings. Cred also acquired the online wealth management platform **Uvera*, further expanding its product suite.
Currently, the bulk of Cred's revenue—around 93-94%—comes from its payments, credit, and insurance services, with insurance showing slightly faster growth. As the company continues to experiment with new product categories, Shah expressed confidence that Cred’s strong foundation will help drive further success.
"Cred started with payments, but now we are able to cross-sell into various categories like credit and insurance, creating a more comprehensive offering for our users," Shah said during a media briefing.
Despite competition in the fintech space, Cred's ability to innovate and expand its product offerings positions it well for continued growth in the future.
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