Fibe reports significant growth in FY23 with new credit card launch

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Fibe reports significant growth in FY23 with new credit card launch
Credit: © Reuters.

MUMBAI - Fibe, an Indian startup known for providing instant cash loans and buy now, pay later (BNPL) services, has reported a substantial improvement in its financial performance for the fiscal year 2023. The company has seen its operating revenue more than double and its net profit surge significantly.

For FY23, Fibe's operating revenue climbed to ₹414.3 crore, a considerable rise from ₹176.3 crore in the previous fiscal year. This growth is reflected in the company's net profit, which jumped to ₹36.3 crore from just ₹4 crore in FY22.

The startup's total revenue reached ₹428.9 crore, which includes non-operating income. This impressive performance comes after Fibe issued over 57 lakh loans, primarily targeting young professionals with its financial products.

However, this period of growth also saw an increase in expenses for the company, totaling ₹387.2 crore. Notable expenditures included significant investment in advertising, which amounted to ₹68.1 crore following the hiring of brand ambassador Tahir Raj Bhasin. Employee benefits also contributed to the expenses with ₹59.6 crore spent, out of which salaries accounted for ₹49.5 crore. Additionally, the company faced asset write-offs of ₹67 crore and finance costs which rose to ₹51.9 crore.

In a strategic move to expand its product offerings, Fibe introduced India's first numberless credit card in partnership with Axis Bank. This innovation came on the heels of a successful Series D funding round where the startup raised $110 million. The round was led by TPG's The Rise Fund and Norwest Venture Partners, indicating strong investor confidence in Fibe's business model and growth trajectory.

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