Tiger Global-Backed OkCredit Narrows FY25 Loss By 34% To INR 23 Cr

OkCredit Raises $15.5 Mn From Tiger Global, Y Combinator And Others

SUMMARY

OkCredit’s net loss narrowed 34% year-on-year to INR 23.2 Cr in FY25 from INR 35.1 Cr in FY24

Operating revenue rose 63.6% YoY to INR 23.3 Cr, while total income grew 60.5% to INR 25.2 Cr

Total expenses fell 4.7% to INR 48.5 Cr in FY25 on the back of lower employee and marketing costs

Bengaluru-based fintech startup OkCredit cut its FY25 by 34% to INR 23.2 Cr from INR 35.1 Cr loss incurred in the previous fiscal year. The startup managed to reduce its net loss on the back of a hefty uptick in its top line and an improvement in its margins.

During the fiscal, operating revenue zoomed 64% to INR 23.3 Cr from INR 14.2 Cr, while other income grew 32% to INR 1.9 Cr. This took the startup’s total income to INR 25.2 Cr, compared to INR 15.7 Cr in the previous fiscal.

The improvement in topline and moderation in expenses have helped OkCredit narrow its losses after years of heavy cash burn. The startup appears to be benefiting from improved monetisation and cost efficiency.

Founded in 2017 by Aditya Prasad, Gaurav Kumar, and Harsh Pokharna, OkCredit operates a mobile-based digital ledger platform that helps small business owners manage their credit and payment transactions.

The app enables merchants to record and track transactions digitally, send payment reminders, and generate reports in multiple Indian languages. It has over 1 Cr downloads on the Google Playstore.

The fintech startup claims to serve merchants across 2,800+ cities and has recorded over 100 Mn downloads to date.

OkCredit has raised about $84 Mn from marquee investors including Lightspeed Venture Partners, Tiger Global, Morningside Venture Capital, Y Combinator, and Venture Highway.

The startup competes with Khatabook and Pagarbook in the MSME-focused fintech segment. Both rivals have also been moving toward improving monetisation and cutting losses ahead of a potential consolidation phase in the sector.

Where Did OkCredit Spend In FY25?

On the expense front, the company saw a 5% decline in total expenditure to INR 48.5 Cr, down from INR 50.9 Cr in FY24. The moderation was primarily driven by lower marketing spends and rationalised employee costs.

Employee Benefits: OkCredit spent INR 25 Cr on employee benefits during FY25, a 7% decline from INR 26.9 Cr in the previous year.

Advertising & Marketing: Marketing and advertising costs saw the steepest drop, plunging 83% YoY to INR 83 Lakh from INR 4.8 Cr in FY24.

Support Service Fees: Support service fees, which form a major cost component, rose 28% YoY to INR 4.9 Cr from INR 3.8 Cr, reflecting higher tech infrastructure and third-party service costs.