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Fintech unicorn OneCard spent Rs 1,000 Cr to earn Rs 500 Cr in FY23

Mobile-first credit card startup OneCard,'s revenue from operations surged 6.4X to Rs 541 crore in FY23 from Rs 83.7 crore in FY22.

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Kunal Manchanda & Harsh Upadhyay
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Fintech unicorn OneCard spent Rs 1,000 Cr to earn Rs 500 Cr in FY23

Mobile-first credit card startup OneCard, run by FPL Technologies, entered the coveted unicorn club after a $100 million round led by Temasek during the initial phase of FY23. The funding seems to have helped the firm grow its revenue by more than six times during that fiscal year.

OneCard’s revenue from operations surged 6.4X to Rs 541 crore in FY23 from Rs 83.7 crore in FY22, according to its annual financial statements filed with the Registrar of Companies.

Financials FY23

Check detailed 3 year financial comparison on thekredible.com

OneCard is a digital credit card provider that offers co-branded credit cards in collaboration with banks such as IDFC First Bank, Federal Bank, and SBM Bank. It also provides value-added services like credit score tracking and the OneScore credit management app.

The sale of business support services is the sole source of revenue for the Pune-based company.

On the cost side, advertisement and promotion formed 32.4% of the total expenses. This cost surged 2.6X to Rs 324 crore in FY23 from Rs 124 crore in FY22. The company ramped up its hiring during FY23 which is evident from its employee benefit cost that shot up 3X to Rs 131 crore. This includes a non-cash ESOP cost worth Rs 45 crore.

Its credit processing fees, IT costs, legal and professional fees, and after-sale services are some other prime costs that led its overall expenditure to go up 3.55X to Rs 1,000 crore in FY23 from Rs 281 crore in FY23. Check TheKredible to see the detailed breakdown of its expenses.

Expenses Breakdown

FY22

₹ 281 Cr

FY23

₹ 1000 Cr

  • Employee benefit expense

  • Advertising promotional expenses

  • Information technology expenses

  • Legal professional charges

  • After sales service expenses

  • Others

With Rs 1,000 crore as total expenses, losses of the firm spiked 2.23X to Rs 406 crore in FY23 from Rs 182 crore in FY22. Its ROCE and EBITDA margin stood at -34.73% and -67.58% during FY23. 

FY22-FY23

FY22 FY23
EBITDA Margin -184.18% -67.58%
Expense/₹ of Op Revenue ₹3.36 ₹1.85
ROCE -25.70% -34.73%

On a unit level, the company spent Rs 1.85 to earn one rupee of operating revenue.

OneCard has raised $425 million to date and is valued at $1.3 billion. According to startup data intelligence platform TheKredible, PeakXV is the largest stakeholder with 23.27% followed by Matrix Partners and QED Holdings. Its co-founders Anurag Sinha, Rupesh Kumar, and Vibhav Hathi cumulatively command around 30% of the company. 

The company is also looking to raise a new round to the tune of $100 million. As per Entrackr sources, the firm is raising a new round but without any increase in its valuation.

OneCard has stood out for surviving the RBI purge on Fintech’s that tried to offer their own cards  by managing to tiptoe around the regulations. A metal card was just the first of the many innovations it has practiced to survive in the market. With almost all its banking partners small banks, OneCard’s pitch of marketing and distribution as well as end to end systems to manage the credit cards has worked with these banks. However, the same pitch is unlikely to work with larger banks. Smaller banks will also be more risk averse when it comes to credit cards, which could stymie volume growth plans. But the confidence shown by its investors in the founding team is clear from the valuations as well as the size of the last funding round. The biggest risk remains a further tweak in the minefield of rules in the credit cards ecosystem, that it has managed to survive so far.

OneCard
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