MC Tech3 | Cred's FY23 revenue triples; India to develop quantum computing chip; and more

One quick thing: Oyo in talks with Apollo Global to refinance $660 million loan

In today’s newsletter:?

• What do Cred's FY23 numbers reveal?
• India to develop indigenous quantum computing chip
• Bengaluru's carpooling conundrum

What do Cred's FY23 numbers reveal?

Last week, a day before Cred announced its Garage product for vehicle services management, numerous luxury cars were parked at the company's headquarters.?

• This exemplifies Cred's vision: creating a digital high street for the affluent 1-3% of the country's population.

Cred's monetisation efforts have proven highly successful, with its revenue surging 3.5 times in FY23 to reach Rs 1,400 crore.

Report card: The Bengaluru-based fintech company Cred generates 90% of its revenue from lending (Cred Cash), bill payments (Cred Max), and e-commerce (travel and shopping).?

• However, the company's expenses remain high, leading to marginal growth in losses.

Despite raising over Rs 8,000 crore to date, Cred's cash reserves now stand at around Rs 2,050 crore.?

• Based on its FY23 losses, this cash runway would last for the next three years.

Betting on UPI: Over the past year, Cred has bet heavily on UPI, India's most popular digital payment method. Its market share has doubled, making it the fourth largest UPI player by value.

Even the richest credit card holders are using UPI more, so it's natural for Cred to follow its customers.?

• Around 75% of digital payments in India are now made through UPI.

The fintech is also betting heavily on credit on UPI (linking your credit card to your UPI account), something that brings the best of credit and UPI together. Cred looks to accelerate this trend to become profitable soon.

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