Fintech unicorn CRED showed clear signs of operational tightening in FY25, reporting steady revenue growth while sharply reducing its core losses a shift that reflects the company’s growing focus on efficiency over pure scale.
CRED’s operating revenue rose 16% year-on-year to Rs 2,735 crore in FY25, according to a company release. More importantly, operating losses declined 51% to Rs 298 crore, marking one of the strongest improvements in its cost structure since inception.
At the operating level, CRED’s gross margins remained strong at around 70%, indicating that the underlying business continues to generate healthy contribution margins. However, the company remained net loss making, with total losses narrowing 11.5% to Rs 1,457 crore, largely due to non-operating expenses such as ESOP costs and depreciation.
User engagement deepens as monetisation improves
CRED continued to deepen engagement among its core user base during the year. Monthly transacting users increased 14.5% to 1.26 crore, while transaction frequency jumped 34% to 14.4 transactions per user per month. The platform processed Rs 8.5 lakh crore in total payment value, up 23% year-on-year.
A key highlight for FY25 was improved monetisation. Around 45% of active members used three or more products, helping lift average revenue per user (ARPU) to nearly Rs 2,000. This multi-product adoption is increasingly central to CRED’s path toward profitability.
Lending emerges as a key growth pillar
Lending remained a major contributor to revenue during the year, with managed assets under management (AUM) reaching Rs 22,000 crore. CRED expanded across payments, lending and personal finance through products such as CRED Money, CRED Cash+, card management tools, a PPI wallet, and its insurance marketplace CRED Garage, which added more insurers during FY25.
Reset phase continues
CRED has raised over $1 billion across nine funding rounds, including a $72 million down round led by GIC in May 2025, which valued the company at $3.64 billion, down from $6.4 billion in 2022.
With operating losses shrinking rapidly and monetisation improving, FY25 marks a reset year for CRED. The company has stated it is targeting full profitability in FY26, a milestone that now looks increasingly within reach though execution remains key.
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