Digital lending startup Moneyview's FY23 profit jumps 2616% to Rs 163 crore

Bengaluru-based digital lending startup Moneyview has reported a 160% growth in its operating revenue from Rs 222 crore in FY22 to Rs 577 crore in FY23. More impressively, the startup's profit surged by 2,616% from Rs 6 crore in FY22 to Rs 163 crore in FY23.

The growth comes after the startup raised $75 million in a Series E funding round in December 2022 at a valuation of $900 million. The round was led by Winter Capital, US-based Tiger Global Management, Evolvence India Fund, and Apis Partners. 

Business expansion and revenue sources

Founded in 2014 by Puneet Agarwal and Sanjay Aggarwal, Money View offers personalised credit products like instant personal loans and personal financial management solutions.

The startup has partnered with NBFCs, including Whizdm Finance, Aditya Birla Capital, DMI Finance, Clix, Incred Finance, Northern Arc, Vivriti Capital, IDFC First Bank, and Oxyzo, among others.  

According to an Entrackr report, revenue growth was largely fueled by income from fees and commissions on loan disbursals, with a notable contribution of Rs 100 crore in non-operating income from interest, leading to a total income of Rs 677 crore in FY23.

Operational costs and expenditure

Despite the impressive revenue growth, MoneyView has managed its expenditures prudently. The largest cost centre was transaction processing fees, followed by advertising and business promotion efforts.

Total expenses rose to Rs 515 crore in FY23 from Rs 240 crore in FY22. This controlled approach to spending has been a critical factor in the company's profitability, with the Return on Capital Employed (ROCE) and EBITDA margin improving to 14% and 28.2%, respectively.