Freo, the digital banking platform, announced its achievement of profitability with a noteworthy gross revenue of Rs 350 crore for the fiscal year 2024. Notably, the company has sustained profitability for the past four months, marking a significant milestone since December 2023.
Anuj Kacker, Co-founder of Freo, emphasized the company's exceptional growth trajectory, profitability, and the trust garnered from a user base exceeding 25 million. He attributed this success to the potency of their technology, customer-centric product offerings, and their overarching mission of broadening financial inclusion.
Over the span of five years, Freo has experienced a substantial five-fold increase in gross revenues, reaching the Rs 350 crore mark. Notably, the company's contribution margins witnessed a remarkable surge from 16 percent in the fourth quarter of fiscal year 2023 to over 40 percent in the corresponding period of fiscal year 2024. This upsurge was fueled by strategic initiatives including cost-effective customer acquisition strategies, expansive nationwide reach encompassing 1,200 cities, introduction of new consumer-centric propositions, a robust risk management framework, and stringent cost control measures.
Furthermore, Freo has diversified its revenue streams, with fee-based revenue now constituting over 45 percent of the total revenue, complementing the remaining 55 percent derived from interest-bearing products. This diversification has fortified the overall profitability of the platform.
In terms of user base expansion, Freo witnessed substantial growth from 15 million users in fiscal year 2022 to an impressive 25 million by the conclusion of fiscal year 2024. Noteworthy is the fact that 60 percent of the company's clientele comprises returning users from its registered base, with over 20 percent engaging with multiple products, underscoring the platform's appeal and utility among its user base.
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