Fino Payments Bank Set To Double Customer Base To 10 Mn In Two Years: CEO

Listed fintech unicorn Fino Payments Bank CEO Rishi Gupta has said that the startup is on a customer acquisition spree and will cross 10 Mn customers in the next 24 months.

“It [Fino] is on a customer acquisition spree, consistently adding more than two lakh new accounts every month. At this rate, your bank’s customer base is expected to more than double and reach the 10 Mn-mark within the next 24 months,” Gupta said in the unicorn’s annual report. 

Fino claims to have around 4.6 Mn customers across the country currently.

“That would be a sizable CASA base that could lead to a much higher annuity income in the years to come,” Gupta said while speaking about the impact of the increase in customer base on current and savings accounts (CASA).

Fino also stated in the annual report that it expects to double its network to over 2 Mn merchant points in the next 36 months, going by the pace of expansion for transactions and CASA.

Gupta added that the startup is now moving to Fino 2.0, focusing ‘on growth and profitability’. The CEO stated that 10% of the fintech startup’s overall business throughput in FY22 came from UPI transactions. The payments bank is now working to increase that share over the next few months.

He also said that the payments bank would launch several new products in FY23, starting with international remittance. 

Fino received the nod for international remittance from the Reserve Bank of India (RBI) in January this year.

As per earlier reports, Fino will allow users to transfer the remittance amount to a Fino account. Indian beneficiaries can then withdraw the amount from a micro-ATM or via Aadhaar-enabled payment services (AEPS)-enabled neighbourhood merchant point.

Fino Payments Bank recorded a profit after tax (PAT) of INR 42.74 Cr in FY22, up 109% from INR 20.4 Cr in FY21. The listed fintech’s revenue rose to INR 1,009 Cr during the year, growing 28% from INR 791.03 Cr the previous fiscal year.

However, in the first quarter of FY23, the payments bank saw a decline in PAT on a quarter-on-quarter (QoQ) basis. Fino’s profit fell more than 42% QoQ to INR 10.10 Cr. On a YoY basis, however, the PAT was 223% higher during the June quarter.

Fino went for an initial public offering (IPO) in November 2021 but had a weak debut as its stocks listed at a 7% discount to the issue price.

Shares of the company were trading 3.16% higher at INR 268 on the BSE during the noon trade on Wednesday.