--- title: "Primetrace FY26 Profit Jumps 6X as Crafto Subscriptions Scale" description: "The Kutumb and Crafto maker tripled revenue to Rs 386 crore and grew profit nearly sixfold. But its audited margin sits far below the EBITDA run rate it..." url: "https://bharat.digital/originals/primetrace-kutumb-crafto-fy26-profit-analysis-nov-2026/index.md" canonical: "https://bharat.digital/originals/primetrace-kutumb-crafto-fy26-profit-analysis-nov-2026/" published: "2026-11-11T11:30:00+04:00" updated: "2026-11-11T11:30:00+04:00" section: "Originals" type: "startup" author: "bharat.digital desk" image: "https://bharat.digital/img/originals/primetrace-kutumb-crafto-fy26-profit-analysis-nov-2026-og.jpg" language: "en-IN" site: "bharat.digital" --- # The good morning app that turned a profit: inside Primetrace's FY26 numbers, and the gap between its filings and its run rate *The Kutumb and Crafto maker tripled revenue to Rs 386 crore and grew profit nearly sixfold. But its audited margin sits far below the EBITDA run rate it announced in March.* By bharat.digital desk. Startup, Startups & Fintech. Published 2026-11-11T11:30:00+04:00. 5 min read. ![Abstract navy and indigo grid of glowing phone shaped tiles with a saffron line climbing above a fainter green line](https://bharat.digital/img/originals/primetrace-kutumb-crafto-fy26-profit-analysis-nov-2026-hero.webp) ## At a glance - Company: Primetrace Technologies (Kutumb, Crafto AI) - What it does: Consumer AI apps for Indian language users: Kutumb, Crafto AI, Sundar AI, Tarot AI and Polo - Based in: Bengaluru - Latest: FY26 operating revenue tripled to Rs 386 Cr; net profit Rs 41.63 Cr - Date: 2026-11-11 - Founders: A, b, h, i, s, h, e, k, , K, e, j, r, i, w, a, l, , (, C, E, O, ), , V, i, p, u, l, , A, l, l, a, w, a, d, h, i, , M, o, h, i, t, , S, h, a, r, m, a, , N, a, v, e, e, n, , D, e, w, a, n, g, a, n ## An app for good morning messages Every morning, millions of Indian phones light up with the same kind of message: a sunrise, a flower, a line of blessing in Hindi or Marathi or Tamil, and increasingly the sender's own face on the card. For years the tech industry treated these greetings as a joke about how Bharat uses WhatsApp. A Bengaluru company built a business on them, and its newest accounts suggest the joke has turned into one of the more interesting profit stories in Indian consumer tech. Primetrace Technologies runs Kutumb, a community app, and Crafto AI, which lets people make personalised greetings and status posts in regional languages. Its standalone financial statements for the year to March 2026, reviewed by Entrackr and reported on 11 November, show revenue from operations of Rs 386 crore, up from Rs 123 crore a year earlier. Net profit rose nearly sixfold to Rs 41.63 crore, from around Rs 7 crore. In a consumer app market better known for losses, that alone is worth a close look. ## How a greeting becomes revenue Crafto came out of watching users. Founder and chief executive Abhishek Kejriwal told ETEntrepreneur in March that the team noticed people on Kutumb were paying local graphic designers to make social media posts. "We realised people were spending money to get these designs made. With Crafto we essentially productised the graphic designer," he said. Moneycontrol described the paid feature in July: subscribers add their own photos and custom greetings to good morning messages. By March 2026, Crafto accounted for roughly 80% of revenue, with around 15 million monthly active users and about five million paid subscribers, according to ETEntrepreneur. The pricing is deliberately small. "People in India are comfortable paying smaller amounts every month if the product provides value," Kejriwal said, describing what he called sachet economy behaviour. The rest of the house of apps includes Sundar AI for photo enhancement, Tarot AI for readings, and Polo, a dating and community app for India's gay users. ## The bill for growth Revenue tripled, but it was bought loudly. Entrackr reported that advertising was the largest cost at Rs 273 crore, about 75% of total spending and 3.3 times the Rs 82 crore of FY25. Employee costs rose 26.2% to Rs 33.5 crore. Total expenses climbed 2.7 times to Rs 363 crore. The company spent Rs 0.94 to earn each rupee of operating revenue, and its EBITDA margin, a measure of operating profit before interest, tax, depreciation and amortisation, was 6.55%. Rs 19 crore of interest income on investments helped lift total income to Rs 405 crore. A year earlier the picture was tighter. In February, Entrackr's reading of the FY25 filings put the company at Rs 128.6 crore of operating revenue, a net profit of Rs 12 crore helped by Rs 18 crore of non-operating income, and an EBITDA margin of minus 5.54%. Advertising and promotion were then 62% of costs. The new report compares FY26 against a standalone FY25 base of Rs 123 crore and about Rs 7 crore of profit; the two reports do not explain the difference between those FY25 figures. ## The gap between the filing and the pitch Here is where the story gets tense. In March, the company told ETEntrepreneur and announced in a release carried by YourStory that it had reached an annual revenue run rate of Rs 550 crore and an EBITDA run rate of Rs 200 crore as of February 2026. A run rate takes a recent period, usually a month, and multiplies it out to a year. In July, people familiar with the matter told Moneycontrol the revenue run rate had passed Rs 600 crore, or about Rs 50 crore a month, as the company held advanced talks to raise $50 million from 360 One Asset and others at a valuation of about $500 million, up from about $150 million in 2021. Set those claims beside the audited year and two different shapes appear. On revenue they fit. Rs 386 crore across twelve months averages about Rs 32 crore a month, by bharat.digital's arithmetic, so a February pace near Rs 46 crore is consistent with a business that grew fast through the year. On profit the gap is wider. A 6.55% EBITDA margin on Rs 386 crore works out to roughly Rs 25 crore of EBITDA for the whole of FY26, while a Rs 200 crore run rate implies about Rs 17 crore in a single month. Both can be true only if the business swung sharply into profit late in the year, or if the run rate uses a different, adjusted definition. The public reports do not say which. ## Why it matters beyond one company India's consumer internet has spent a decade arguing that users outside the big cities will not pay for software. Primetrace is a counterexample built on small subscriptions for very ordinary needs: a nicer greeting, a cleaner photo, a tarot reading. Its profit also arrived with modest outside capital. Entrackr puts total funding at around $30 million, from investors including Peak XV Partners and Tiger Global, and the company last raised a $26 million Series A in June 2021, Moneycontrol reported. ## What could still go wrong Plenty. The model leans on paid acquisition, and when three quarters of spending goes to ads, a rise in ad prices or a fall in conversion can erase a thin 6.55% margin quickly. One app drives most of the money, so a change in how WhatsApp or app stores treat Crafto's posts could hurt. The $50 million round reported in July has not been confirmed as closed in the reports reviewed here. And the gap between filed EBITDA and the claimed run rate will only close with FY27 accounts. If those show margins anywhere near what the February run rate implies, Primetrace will have one of the strongest profit profiles in Indian consumer apps. If not, investors will want to know what the run rate left out. ## Sources 1. [Entrackr: Kutumb parent posts Rs 405 Cr total income in FY26; profit surges 6X](https://entrackr.com/fintrackr/kutumb-parent-posts-rs-405-cr-total-income-in-fy26-profit-surges-6x-12800245) 2. [Entrackr: Peak XV-funded Kutumb turns profitable, enters Indicorn club](https://entrackr.com/fintrackr/peak-xv-funded-kutumb-turns-profitable-enters-indicorn-club-11112881) 3. [ETEntrepreneur: Primetrace eyes next phase of growth after hitting Rs 200 Cr EBITDA run rate](https://entrepreneur.economictimes.indiatimes.com/news/startups/primetrace-achieves-200-cr-ebitda-run-rate-a-giant-leap-in-consumer-ai-startups/129622517) 4. [Moneycontrol: Kutumb parent Primetrace in talks to raise $50 million in fresh funding at $500 million valuation](https://www.moneycontrol.com/news/business/startup/kutumb-parent-primetrace-in-talks-to-raise-50-million-in-fresh-funding-at-500-million-valuation-13987564.html) 5. [YourStory: Consumer AI startup Primetrace reports Rs 200 Cr EBITDA run rate (company release)](https://yourstory.com/2026/03/consumer-ai-startup-primetrace-reports-rs-200-cr-ebitda-run-rate) Written by the bharat.digital desk from the sources above. Figures are as reported by those sources.