- Julo reaches profitability milestone with $120 million in revenue in 2023.
- The Indonesia-based lending platform saw 73% revenue growth last year.
- Julo credits operational efficiency and over 70% customer retention for achieving breakeven.
Indonesia-based financial technology company Julo recently announced hitting an important milestone – operating profit breakeven in December 2023.
Along with this achievement, the online lending platform saw its revenue grow 73% for the 2023 financial year, reaching over $120 million in annual recurring revenue.
According to a statement from the company, Julo’s sustainable business model and operational efficiency have fueled its path to profitability.
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A source revealed to Tech in Asia that Julo surpassed $100 million in sales last October as it approached this profitability goal.
While full-year operating profit details are unclear, the company did post a significant net loss in 2022, driven largely by expanding bad debts and operating costs.
Julo financial transformation
However, Julo seems to have turned a corner based on its latest financial report. The company credits its over 70% cohort retention rate for dramatically lowering customer acquisition expenses.
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In 2023 alone, Julo disbursed over $454 million in loans, a 50% year-over-year increase. Total loan disbursements have now topped $1 billion since its launch in 2016.
Expanding services
Offering cash loans, pay-later services, bill payments, and student financing options, Julo aims to serve Indonesia’s middle-income borrowers.
The company has raised $95 million to date from investors, including Credit Saison, Gobi Partners, and East Ventures.
Scaling operations
Reaching breakeven just seven years after its founding highlights Julo’s rapid growth and maturation in Indonesia’s financial services market.
The profitability milestone sets the stage for the firm to continue scaling its lending platform and suite of digital financial products across the country.
To read the original article in its entirety: https://www.techinasia.com/julo-hits-breakeven-logs-120m-annual-recurring-revenue
