Fintech Unicorn OneCard records INR 183 Cr loss in FY22 due to high advertising costs

News update

• OfStartup Story Team | March 20, 2023

OneCard’s net loss widens by over 5.5X to INR 182.76 Cr in FY22 as expenses grow in line with business growth. However, the fintech unicorn’s operating revenue rose 7.8X to INR 83.78 Cr from INR 10.78 Cr in the previous financial year, purely from the sale of services. OneCard works with banks and financial institutions to offer credit cards and other technology-enabled financial solutions.

OneCard’s total revenue, including other income, saw a 6X growth to INR 97.85 Cr from INR 16.39 Cr in the previous fiscal. However, total spend rose by 5.7X to INR 280.61 Cr in FY22 from INR 49.58 Cr in FY21, primarily due to a significant increase in advertising and promotional spend.

OneCard’s other expenses, which include rent, insurance and advertising, accounted for the majority of expenses. These expenses rose significantly, increasing 6.6 times to INR 235.12 Cr from INR 35.5 Cr in FY21. Advertising and promotional expenditure increased significantly by 10.5 times to INR 124.16 Cr in FY22 from INR 11.8 Cr in the previous financial year.

In FY22, OneCard recorded a net loss of INR 182.76 Cr due to an increase in expenses, while operating income grew 7.8X to INR 83.78 Cr. Other expenses, such as rent, insurance and advertising expenses, made up a large part of the total expenses, which rose 5.7X to INR 280.61 Cr. OneCard’s co-branded credit card is offered in partnership with several banks, including South Indian Bank, Federal Bank and BoB Financial. The fintech startup also offers OneScore, a digital credit scoring platform that provides free credit score checks.

Last year, OneCard, a Pune-based fintech startup, became a unicorn after raising around $100 million (roughly INR 802 crore) in funding led by Singapore’s Temasek. With a total funding of $227 million and backing from Sequoia Capital, GIC and QED Investors, the startup offers IT-enabled financial solutions and credit cards in partnership with banks such as South Indian Bank and Federal Bank. However, OneCard faces competition from Kodo Card, Karbon Card, Slice and Uni Card. Recently, the startup reported cyber fraud of INR 21.32 lakh after five fraudsters used the details of Bollywood actors and celebrities to obtain OneCard credit cards.

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