Despite processing $80 Bn in payments annually and backing from Krafton, Cashfree Payments saw net loss deepen and EBITDA margins deteriorate in FY25.
Flat Revenue, Rising Losses
Cashfree Payments, one of India’s prominent fintech soonicorns, reported a 14% increase in net loss for FY25, amounting to INR 154.1 Cr, compared to INR 135 Cr in FY24.
- The company’s operating revenue slipped slightly to INR 640 Cr from INR 642.7 Cr in FY24.
- Total income, including other income of INR 67 Lakh, stood at INR 640.7 Cr.
The dip in revenue and increased operational spend pushed Cashfree’s EBITDA loss deeper, widening to INR 131 Cr from INR 109.5 Cr last year.
- EBITDA margin worsened from -17% in FY24 to -20% in FY25, reflecting growing inefficiencies.
Revenue Composition: Heavy Dependence on Gateway Commissions
Despite the stagnant top line, Cashfree’s core revenue drivers remained steady:
- Payment gateway commission contributed INR 480.8 Cr in FY25.
- Commission from other financial services generated INR 103.2 Cr.
- Payouts commission accounted for INR 55.3 Cr.
These revenue streams highlight Cashfree’s stronghold in B2B payment infrastructure, with over 8 Lakh businesses served — including MakeMyTrip, Zomato, CRED, and Delhivery.
Expense Surge: Marketing Takes a Big Leap
While Cashfree’s overall expenses rose modestly by 2% to INR 794.6 Cr, certain cost heads saw significant changes:
🔺 Marketing & Promotion
- Spiked 162% to INR 20.4 Cr from INR 7.8 Cr in FY24.
- Indicates a renewed customer acquisition or brand-building push, possibly ahead of scaling efforts.
🔻 Employee Costs
- Marginally down to INR 243.3 Cr from INR 244.9 Cr, showing stable headcount spend.
🔺 Travel & Conveyance
- Jumped 34.4% YoY to INR 41.8 Cr, suggesting increased business activity or expansion efforts.
Backed by Big Capital Despite Losses
In February 2025, Cashfree raised $53 Mn (~INR 440 Cr) in a strategic round led by KRAFTON, the South Korean gaming giant, with continued support from Apis Growth Fund II.
- This capital likely helped fund the increased marketing, operational spending, and new product development.
- However, the funding hasn’t yet translated into revenue growth or improved margins.
Outlook: Strategic Rethink Needed?
While Cashfree continues to process over $80 Bn in payments annually, its top-line stagnation and widening losses point to a few key concerns:
- Scaling revenue without proportionally increasing costs will be critical.
- The company must leverage its funding to improve unit economics, especially in customer acquisition.
- A return to profitability will likely depend on optimising spend and monetising newer verticals or APIs more effectively.
In a competitive fintech market crowded with Razorpay, Pine Labs, and PayU, Cashfree’s path to profitability will demand sharper execution in FY26 and beyond.
