The fintech startup reported a 11% increase in its revenue from operations to INR 111.46 Cr in FY24
It reported an EBITDA loss of INR 12.3 Cr during the year under review as against an EBITDA loss of INR 36.6 Cr in FY23
Founded by Kunal Varma, Anuj Kacker, and Bala Parthasarathy in 2015, Freo is a digital banking platform that provides credit under the name MoneyTap
Digital banking startup Freo narrowed its net loss by 64.54% to INR 14.16 Cr in the financial year 2023-24 (FY24) from INR 39.94 Cr in the previous year, on the back of improvement in its EBITDA margin.
Revenue from operations rose 11% to INR 111.46 Cr in the financial year ended March 2024 from INR 99.80 Cr in the previous year.
The startup reported an EBITDA loss of INR 12.3 Cr during the year under review as against an EBITDA loss of INR 36.6 Cr in FY23. As a result, EBITDA margin improved 26 percentage points to -11% in FY24 from -37% last year.
Founded by Kunal Varma, Anuj Kacker, and Bala Parthasarathy in 2015, Freo previously operated under the name MoneyTap. Later, MoneyTap
became a part of Freo, a digital banking . platform. It provides credit under the name MoneyTap.
The neobanking startup offers a range of products such as personal credit line, cards, loans, bill payments, credit on UPI, digital savings accounts, deposits, insurance solutions, and financial utilities.
In October last year, the Bengaluru-based startup forayed into the insurance space after receiving a corporate agent licence from the Insurance Regulatory and Development Authority of India (IRDAI).
As a digital banking firm, Freo primarily earns revenue from the sale of services. This includes income generated from technology development services, credit processing services, credit line setup services, portfolio linked services, commission, strategic marketing services, service fee, among others.
The revenue from this segment grew almost 9% to INR 99.54 Cr during the year under review from INR 91.60 Cr in the previous year.
Other operating revenue jumped 45% to INR 11.92 Cr in FY24 from INR 8.20 Cr in the previous fiscal year.
Where Did Freo Spend In FY24?
The digital banking startup managed to bring down its expenses by 10.28% to INR 125.58 Cr from INR 139.97 Cr in FY23.
Employee Benefit Expenses: The spending under this head declined 15.14% to INR 39.56 Cr in FY24 from INR 46.62 Cr in the previous fiscal year.
Information Technology Expenses: Freo spent INR 4.30 Cr under this head in FY24, up 18.78% from INR 3.62 Cr last year.
Miscellaneous Expenses: The startup reported a 6.38% decline in its miscellaneous expenses to INR 73.26 Cr during the year under review from INR 78.26 Cr in the previous year. This was the biggest expense head for Freo during the year under review. However, it did not give a breakdown of these expenses.
Freo is among the growing list of startups looking to shift their domicile back to India as it looks to capitalise on India’s booming economy, access to a deeper pool of investors, better initial public offering (IPO) prospects, among others.
In February 2024, Freo raised an undisclosed amount of debt from Small Industries Development Bank of India (SIDBI).
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