Bengaluru-based fintech startup OkCredit, backed by Tiger Global, has reported a notable improvement in its financial performance for the fiscal year 2024-25. The company reduced its net loss by 34%, bringing it down from ₹35.1 crore in FY24 to ₹23.2 crore in FY25. At the same time, operating revenue rose by 63.6% to ₹23.3 crore, while total income increased to ₹25.2 crore from ₹15.7 crore the previous year. These numbers indicate that OkCredit is steadily moving toward a more sustainable business model and building confidence among investors and stakeholders.
Empowering Small Merchants with Digital Tools
OkCredit functions as a digital ledger application that helps small business owners manage credit and payments through their mobile phones. Traditionally, merchants used paper notebooks to record transactions and customer dues, a process that could be slow and prone to errors. OkCredit simplifies this system with an easy-to-use app that supports multiple Indian languages. Merchants can track payments, send reminders, and generate transaction reports with minimal effort. The startup has expanded its presence to more than 2,800 cities across India and has over 100 million app downloads, reflecting widespread adoption among small business owners.
Strategies Behind Improved Performance
Several strategic moves contributed to OkCredit’s improved results in FY25. The company focused on increasing revenue by acquiring new merchants and boosting engagement among existing users. In parallel, total expenses were reduced by approximately 4.7%, largely due to a significant decrease in marketing spend, which fell by 83% year-on-year. Employee costs were also streamlined without compromising operational efficiency. By focusing on cost optimization and monetizing its services more effectively, OkCredit has strengthened its margins and reduced reliance on external funding to cover operational losses. These measures show a disciplined approach to growth that balances expansion with financial prudence.
Outlook and Future Prospects
For OkCredit, narrowing losses while expanding revenue demonstrates a positive trajectory toward profitability. In a fintech landscape where many startups continue to burn cash, OkCredit’s financial discipline sets it apart. Investors are likely to see this performance as a sign of maturity and long-term potential. Moving forward, the startup’s priorities will include sustaining growth, further improving operational efficiency, and exploring new avenues to monetize its user base. With competition intensifying in the digital ledger and merchant payment space, OkCredit’s ability to innovate while managing costs will be crucial for maintaining its market position.
To put it simply, OkCredit’s progress is like running a small lemonade stand. Last year, you lost ₹100 because your expenses were higher than your earnings. This year, you lost only ₹66, sold more lemonade, and spent money more wisely. This illustrates how OkCredit has managed to grow revenue, reduce losses, and move closer to profitability.