Freo achieves profitability, records Rs 350 cr revenue in FY24

New Delhi, April 8 (IANS) Digital banking platform Freo on Monday said it has achieved profitability and reported gross revenue of Rs 350 crore for FY24.

The company mentioned that it has been profitable for the last four months since December 2023.

"Our remarkable growth, profitability and the trust of over 25 million registered users is a testament to the power of our technology, customer-centric products and our mission of democratising financial inclusion," Anuj Kacker, Co-founder at Freo, said in a statement.

Freo's gross revenues jumped 5x to Rs 350 crore over the past five years.

The company's contribution margins soared from 16 per cent in the fourth quarter (Q4) of FY23 to over 40 per cent in Q4 FY24, driven by low-cost customer acquisition through product-led growth, pan-India expansion to over 1,200 cities, new consumer value propositions, a robust risk control framework, and stringent cost control measures.

Its revenue streams also diversified, with fee-based revenue now accounting for over 45 per cent of total revenue, alongside the 55 per cent from interest-bearing products, strengthening overall profitability.

Freo's user base grew from 15 million in FY22 to 25 million by the end of FY24.

According to Freo, a staggering 60 per cent of the company's customers are returning users from its registered base, with over 20 per cent having multiple products.