Neobank OPEN Spent INR 3.5 To Earn Every Rupee In FY25

SUMMARY

OPEN reported a 35% decline in its net loss to INR 108.9 Cr in FY25 from INR 168.4 Cr in the previous year

Revenue from operations surged 85% INR 45.9 Cr during the year under review from INR 24.8 Cr in FY24. Including other income of INR 11.6 Cr, OPEN’s total income stood at INR 57.6 Cr in FY25

Its EBITDA loss improved to INR 96.5 Cr in FY25 from an EBITDA loss of INR 143.7 Cr in the previous fiscal year. EBITDA margin improved to -210% from -579% in FY24

Neobanking unicorn OPEN reported a 35% decline in its net loss to INR 108.9 Cr in FY25 from INR 168.4 Cr in the previous year, as its top line saw strong growth and expenses declined.

Revenue from operations surged 85% INR 45.9 Cr during the year under review from INR 24.8 Cr in FY24. Including other income of INR 11.6 Cr, OPEN’s total income stood at INR 57.6 Cr in FY25.

Its EBITDA loss improved to INR 96.5 Cr in FY25 from an EBITDA loss of INR 143.7 Cr in the previous fiscal year. EBITDA margin improved to -210% from -579% in FY24.

Founded in 2017, OPEN rode the neobanking wave by targeting small businesses and startups with a digital-first approach to banking, payments, and financial management.

The startup became India’s 100th unicorn in 2022 after raising over $50 Mn from investors such as IIFL, Temasek, and Tiger Global. Overall, OPEN has raised a total funding of over $250 Mn to date.

Now, let’s take a look at OPEN’s expenses in FY25.

Where Did OPEN Spend?

Despite the growth in its revenue, the unicorn managed to trim its expenses by 17.4% to INR 158.4 Cr in FY25 from INR 191.9 Cr in the previous fiscal year, indicating a sharp focus on cost control and operational efficiency.

Employee Benefit Expenses: The startup’s employee costs declined 13.4% to INR 97.6 Cr from INR 112.7 Cr in FY24.

Advertising Expenses: OPEN trimmed its spending on advertising by 40.9% to INR 5.2 Cr from INR 8.8 Cr in FY24.

IT Expenses: IT expenses, too, contracted 23.1% to INR 18.3 Cr in FY25 from INR 23.8 Cr in the previous fiscal year.

Despite lofty promises, India’s neobanking players have failed to take off in terms of financial performance. The lack of digital bank licences has kept the likes of OPEN, Jupiter, Fi Money, and Niyo dependent on traditional banks for core banking infrastructure and compliance, limiting their ability to monetise effectively.

As a result, neobanks have struggled to translate user growth into sustainable revenue. Many of them have posted widening losses over the past few years and have been forced to scale back operations or pivot to distribution-led models such as payments, loans, and insurance.

Fi Money, which recently filed its financial statements for FY24, saw its loss narrowed 16.1% to INR 253.3 Cr during the year from INR 301.8 Cr in FY23. Meanwhile, revenue from operations grew 31.6% to INR 50 Cr in FY24 from INR 38 Cr in the previous year.