WeRize Sees Significant Growth in FY25 with British International Investment Support

WeRize has achieved impressive growth in FY25, aided by British International Investment. The Bengaluru-based fintech platform demonstrated robust performance by more than doubling its net profits. According to consolidated financial statements filed with the Registrar of Companies, WeRize’s revenue from operations rose by 64%, reaching Rs 236 crore in FY25, compared to Rs 144 crore in FY24.

Overview of WeRize’s Growth

Founded by Vishal Chopra and Himanshu Gupta, WeRize provides a range of financial products including mortgages, unsecured credit, insurance, and savings to over 300 million people across more than 5,000 small cities. The company operates under a unique “Social Shopify of Finance” model, allowing over 10,000 freelancers in 2,500 cities to distribute financial products within their networks, effectively reducing the need for physical branches or a dedicated field force.

Revenue Breakdown for FY25

In FY25, interest from loans constituted 46% of the total operating revenue, generating Rs 109 crore. Additionally, the loan processing fee contributed Rs 39 crore, while the company earned Rs 74 crore from service sales. Other operating revenue included income from interest on fixed deposits and bad debt recoveries. WeRize also generated Rs 4 crore from non-operating activities, culminating in a total income of Rs 240 crore in FY25.

Expense Analysis

Employee benefit expenses represented the largest portion of WeRize’s costs, accounting for 29% of total expenditure, which surged by 50% to Rs 66 crore in FY25. Performance payouts to the extensive network of financial consultant freelancers increased by 93% year-on-year, amounting to Rs 54 crore in the last fiscal year. Additionally, finance costs escalated by 2.5 times to Rs 25 crore, while legal and professional fees reached Rs 30 crore. Other operational expenses, such as subscriptions, advertising, and travel costs, amounted to Rs 52 crore, resulting in a total expenditure rise of 61% to Rs 227 crore from Rs 141 crore in FY24.

Profitability Insights

With revenue growth slightly outpacing the rise in expenses, WeRize doubled its profit for FY25, reaching Rs 10 crore, up from Rs 5 crore in FY24. The company’s Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin improved to 13.08% and 18.64%, respectively.

Operational Efficiency

On a per unit basis, WeRize spent Rs 0.96 to earn each rupee of operating revenue in FY25. By March 2025, its current assets totalled Rs 267 crore, paired with a cash and bank balance of Rs 87 crore.

Funding and Valuation

WeRize has successfully secured approximately $25.75 million in equity funding from notable investors including British International Investment, Sony Japan, 3one4 Capital, and Picus Capital, achieving a current valuation of $115.5 million.