Kunal Shah’s CRED burned over ₹1,300 crore in FY23 but slashed losses by 41% in FY24 as revenues surged. Here’s why Shah believes fintech scale needs time before profits.
Kunal Shah & CRED: A Journey from Loss to Lean Growth
Kunal Shah founded CRED in 2018 as a rewards-based credit card bill payment platform. But like many fintech startups, profitability wasn’t the immediate aim—scale and brand-building were.
📉 Massive Early Losses
- In FY19, CRED burned ₹64 crore without a single rupee in operating revenue .
- By FY22–23, consolidated losses skyrocketed to ₹1,347 crore, even as revenues grew to ₹1,400 crore .
Shah explained that massive marketing and engagement investments were part of their strategy to build distribution and consumer trust fortuneindia.com.
📈 Growth & Lean Moves in FY24
- Revenue jumped 66% to ₹2,473 crore in FY24 reddit.com+5entrackr.com+5yourstory.com+5.
- Operating losses fell by 41% to ₹609 crore, thanks to higher monetisation and cost leverage reddit.com+5livemint.com+5financialexpress.com+5.
- Shah emphasized “operating leverage”—as revenue grows, costs don’t scale as fast fortuneindia.com+3yourstory.com+3livemint.com+3.
Shah’s Philosophy: Losses Are Strategic
At Global Fintech Fest 2023, Shah said:
“Fintech growth wouldn’t happen without loss‑making companies…” moneycontrol.com+10cnbctv18.com+10fortuneindia.com+10.
And in 2023:
“We are not thinking about profitability now… we’ll continue building brand and member base” financialexpress.com.
He reinforced that building tech-driven customer engagement and trust comes before profit.
Community Speaks
Reddit debates show mixed views:
“Cred doesn’t have a profitable and scalable business model… but their other experiments might become fruitful if executed properly.” yourstory.com+15reddit.com+15reddit.com+15
“FY 2024 loss: ₹609 Cr… where are you getting these numbers from? Cred is doing pretty well.” timesofindia.indiatimes.com+9reddit.com+9livemint.com+9
📌 Disclaimer
This article is based on publicly available financial reports and interviews up to July 2025. Financial data may change with future filings—always verify via official sources.
❓ FAQs
Q1. Why is Kunal Shah OK with such big losses?
He believes early losses are essential to build scale, user trust, and engagement—key ingredients for future profitability .
Q2. Are CRED’s losses shrinking?
Yes. Operating losses fell from over ₹1,000 crore to ₹609 crore in FY24, even as revenue surged ﹣66% timesofindia.indiatimes.com+7entrackr.com+7livemint.com+7.
Q3. When will CRED become profitable?
No confirmed timeline. Shah insists profitability isn’t the current focus—it follows when product suite, user base, and monetisation fully develop reddit.com+9financialexpress.com+9yourstory.com+9.
Q4. How does cost reduction fit the strategy?
Customer acquisition cost has fallen by ~40%, mainly due to a shift from paid campaigns to organic growth strategies .
Q5. Is this approach typical in fintech?
Yes. Many fintech startups globally focus on growth and market share initially. Shah affirms such loss-making phases have fueled India’s fintech boom .
