Fintech unicorn OneCard’s FY22 loss widens to Rs 183 cr

By Aman Rawat

  • 09 Nov 2022
Credit: VCCircle

Credit card unicorn OneCard’s FY22 net loss surged to Rs 182.8 crore from Rs 33.2 crore in FY21 even as revenue from operations jumped nearly 7x for the same period.

The Temasek-backed company recorded a revenue of Rs 83.78 crore in FY22 from Rs 10.78 crore in the previous fiscal, as per its annual financial statement filed with Registrar of Companies.

 

OneCard entered the coveted list of Indian unicorn startups in July earlier this year after it raised $100 million in its Series D round led by Temasek, with participation from existing backers QED, Sequoia Capital India and Hummingbird Ventures. The company also counts Matrix Partners India, GIC and Ocean View Investments Group as its investors.

Founded by Anurag Sinha, Rupesh Kumar and Vibhav Hathi, FPL Technologies, in 2019, started its operations as a digital credit score platform, OneScore, offering free credit score checks and personalized insights to customers.

In June 2020, the company started offering its mobile-first metal credit card without any joining fee or annual fee. The card is issued based on agreements with its customers, generally for a period of 60 months.

In the financial year ended 31 March 2022, OneCard saw its expenses balloon more than five times to Rs 280.6 crore from Rs 49.6 crore in the previous fiscal.

The company’s promotional expenses accounted for nearly half of its total expenses at Rs 124.15 crore, up from just Rs 11.8 crore in FY21. The costs also include expenses incurred by the company for issuing reward points to customers for purchases made via credit cards as well as for referrals.

The Pune-headquartered firm’s employee benefits cost grew more than 3x to Rs 43.2 crore from 13.6 crore a year before. Also, the company’s expenses on information technology and after-sales surged to Rs 13.9 crore and Rs 10.3 crore, respectively.

In FY22, OneCard’s legal professional charges and finance costs stood at Rs 7 crore and Rs 10.7 crore, respectively.

In July 2020, FPL Technologies had raised around Rs 80 crore as part of the Series A funding round, and in the following month, the company raised another $10 million as part of the extended round.