Temasek-backed credit card startup OneCard saw its loss widen in the financial year through March 2023, despite an impressive jump in its revenue from operations.
The Bengaluru-headquartered company’s net loss expanded to Rs 406 crore in FY23 from Rs 183 crore in the previous fiscal year, on account of higher spending on employees and marketing.
OneCard, which is operated by FPL Technologies Pvt. Ltd, saw its revenue from operations shoot up 6.4 times to Rs 541 crore in FY23 from Rs 83.7 crore the year before. Its sole source of income is the sale of business support services. It also earned Rs 52.6 crore in other income, which took its top line to Rs 594 crore.
Coming on to the expenses side, its total expenditure surged 3.5 times to Rs 999.5 crore in FY23 from Rs 280.6 crore in the financial year before. This means that it spent around Rs 1,000 crore to earn Rs 541 crore in revenue from operations. On the unit economics level, it spent around Rs 1.84 to earn every single rupee from operations.
OneCard was founded by Anurag Sinha, Rupesh Kumar and Vibhav Hathi in 2019. The company began its operations as a digital credit score platform, OneScore. It initially used to provide free credit score checks and personalized insights to customers. However, in June 2020, the company rolled out its mobile-first metal credit card without any joining fee or annual fee. It offers these credit cards in partnerships with several banks including Bank of Baroda, IDFC First Bank, Federal Bank, and SBM Bank.
The startup attained unicorn status—a privately held company with a valuation of $1 billion or more—in July last year after it raised $100 million in its Series D round led by Temasek, with participation from existing backers QED, Peak XV Partners and Hummingbird Ventures. The startup also counts Matrix Partners India, GIC and Ocean View Investments Group as its investors.
