Can Cred launch co-branded credit cards in the coming years? Well, there is a big chance since, in a recent interview, Kunal Shah, the founder of the fintech unicorn, mentioned the probability of Cred launching co-branded credit cards. He mentioned that he had considered creating a co-branded credit card for Cred’s users but had not yet set a specific timeframe. The news came to light when Cred shared the FY24 revenue report on 30th September 2024.
The fintech company on Monday rolled out its FY24 report, which showed a 66% jump in revenue to ₹2,473 crores for 2023-24 from ₹1,484 crores in the previous financial year. The report also shows how Cred’s losses fell from ₹1,024 crore to ₹606 crore in the same time period.
However, despite the rise in revenue, the company also reported a net loss of Rs 1,644 crore, which is an increase of about 22% year-on-year, after considering its expenses related to employee stock ownership plans and taxes. Cred has also reported a significant 55% year-on-year surge in its total payments volume, which reached Rs 6.8 lakh crore, reflecting the company’s growing influence in the payments sector.
Cred has helped banks and non-banking finance companies (NBFCs) build a significant loan book of about ₹15,000 crore. Shah mentioned that due to their focus on prime and super prime customers, top financial institutions have shown a keen interest in collaborating with Cred, with new partnerships already announced and more in the pipeline. Cred is planning to focus on investments in new products, engineering, and design over the next few quarters. The company has announced its intention to launch fresh products in the near future, including a secured credit product and its own NBFC business under Newtap Finance.
Bottom Line
As mentioned by the founder, Kunal Shah, Cred could launch a co-branded credit card in the near future. This decision could benefit both Cred and its users by offering them exclusive perks, reward points, and cashback in collaboration with partner brands. The launch of co-branded credit cards by Cred will surely boost the company’s economy and growth. If these co-branded credit cards are launched by next year, the revenue report for the next financial year can be way better compared with this year’s financial report.