Lendingtech startup Fibe (formerly EarlySalary) reported more than a 9X jump in its consolidated net profit to INR 36.3 Cr in the financial year 2022-23 (FY23) from INR 4 Cr in the previous year on the back of a strong growth in business.
Operating revenue jumped 135% to INR 414.3 Cr during the year under review from INR 176.3 Cr in FY22.
Founded in 2015 by Ashish Goyal and Akshay Mehrotra, Fibe caters to young working professionals through its app. Its offerings include short-term instant cash loans, long-term personal loans, and buy now, pay later (BNPL) plans.
Given the nature of its offerings, the startup earns a majority of its revenue from sale of services. Its sources of operating revenue include interest on standard loans, loan processing fees, penalty charges, and marketing income.
Including interest income and other non-operating income, Fibe’s total revenue stood at INR 428.9 Cr in FY23 as against INR 180.3 Cr in the previous fiscal year.
It must be noted the startup also raised $110 Mn in its Series D funding round, led by TPG’s The Rise Fund and Norwest Venture Partners, during the year under review.
Zooming Into Fibe’s Expenses
In line with the rise in its operating revenue, Fibe’s total expenses jumped 121% to INR 387.2 Cr in FY23 from INR 175.2 Cr in the previous year.
Advertising Expenses: The startup spent INR 68.1 Cr on advertising and promotional expenses in FY23, a jump of over 90% from INR 35.6 Cr in FY22.
It is pertinent to note that Fibe roped in actor Tahir Raj Bhasin as its brand ambassador during the year under review.
Employee Costs: Fibe’s employee benefit expenses zoomed 63% to INR 59.6 Cr in FY23 from INR 36.6 Cr in the previous fiscal year. In that, the company spent INR 49.5 Cr on salaries and wages, which rose 60% year-on-year.
Write-Offs: Fibe wrote off assets worth INR 67 Cr in FY23 as against INR 19 Cr in the prior year. However, the startup’s filings didn’t give any further information about these assets which were written off.
Finance Cost: As a lender, finance costs are a major expense for Fibe. During the year under review, Fibe’s finance cost jumped 38% to INR 51.9 from INR 37.7 Cr in FY22.
Fibe claims to have disbursed over 57 Lakh loans worth more than INR 18,000 Cr so far.
The fintech startup has more than 5,000 partnerships. Most recently, it tied up with Axis Bank to launch India’s first numberless credit card – the Fibe Axis Bank Credit Card.
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