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OkCredit, a digital ledger app for small and medium-sized businesses, has reported a massive increase in its revenue from operations from Rs 39 lakh in FY22 to Rs 8.3 crore in FY23.
Launched in 2017, the startup has raised around $90 million in funding from prominent investors, including Lightspeed and Tiger Global. Despite this, OkCredit struggled in its early years, failing to generate operating revenue in FY19 and FY20. However, It has shown signs of growth, with a focus on profitability.
What drove the revenue growth?
The company's financial performance has been a mix of highs and lows. Since its launch, OkCredit has generated approximately Rs 9 crore in revenue from operations, with a notable increase in FY23.
The majority of its operating revenue, over 80%, comes from its core digital ledger services, while the rest is from advertising and subscriptions. Including non-operating revenue, the total revenue for FY23 stood at Rs 9.5 crore.
Cost management and expense reduction
OkCredit has been proactive in managing its expenses. Employee benefit expenses, which form the largest part of its costs, were reduced by 47% in FY23. Marketing and IT expenses also saw significant cuts. This cost management led to a 50.6% reduction in overall expenses compared to FY22, Entrackr reported.
What about the losses?
The startup's financial health has shown signs of improvement, with a 58% decrease in losses to Rs 47.7 crore in FY23, a notable decline from the previous year's loss of Rs 113.6 crore. Key financial metrics such as EBITDA margin and ROCE have seen positive changes, although they remain negative.
OkCredit has established a strong market presence, with the app available in over 10 local languages and achieving over 10 million downloads. The startup's focus on digital ledger services for small and medium-sized businesses positions it well in a growing market.
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