Fin-tech Startup Cred Raised $120 million in Recent Funding


The festive season is around the corner, and so is the season for the start-up ecosystem in India. Joining the bandwagon is a Bangalore based fin-tech startup CRED, which has closed a $120 million funding round, led by existing backers Ribbit Capital, Gemini Investments, a personal investment vehicle of Yuri Milner’s DST Global, and Sequoia Capital.
While regulatory filings show an infusion of $100 million, the company said it has racked up an additional $20 million from investors. This will be one of the largest funding rounds for a less than-a-year-old Indian company.
According to a regulatory filing, existing investors Sequoia Capital, Ribbit Capital and DST Global’s Gemini Investments led the round, with participation from Tiger Global, Hillhouse Capital, General Catalyst, Greenoaks Capital and Dragoneer. The Bengaluru-based Cred was valued at $75 million when it first raised capital last year. After the final round, the startup is valued at $450 million.
Freecharge founder Kunal Shah has launched Cred as his second venture and positioned the company as a platform for all forms of credit card bill payments.
CRED is a members-only club that rewards individuals for their timely credit card bill payments by providing them with exclusive offers and access to premium experiences. It is a platform that allows credit card users to manage multiple cards along with an analysis of their credit score. Members with a high CIBIL or CRIF score are eligible for exclusive rewards upon payment of their credit card bills through the app.
CRED is also equipped with an AI-backed system that keeps track of every single nuance of a credit card payment journey – right from due date reminder, spend patterns and other card usage statistics.
The startup has partnered with brands such as BookMyShow, Urban Ladder, Airbnb, CureFit, FreshMenu and Ixigo among others for rewards, experiences, and upgrades every month. The banks associated with Cred include HDFC, ICICI, Kotak, Axis, among others.
Mr. Shah said the fresh capital will be used to expand into international markets and strengthen its merchant ecosystem. He clarified that the company doesn’t intend to compete with the banks on credit front, and rather wishes to act as a facilitator to push credit card usage in the country.
Amidst the speculation of a potential slow-down in the economy, the funding trends for startups have been encouraging so far. India being one of the fastest-growing large economies of the world, still lags when it comes to credit card usage. Thus, providing a convenient market for fin-tech startups. Many Silicon Valley companies and fin-tech startups in India today want to bring their financial services to the billion users’ market.

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