CRED is in talks to raise $300 million in funding at a valuation of $6 billion
- ByStartupStory | February 12, 2022
CRED, an intech business, is in negotiations with both old and new investors for its next round of investment. While nothing has been verified, according to Moneycontrol, the company is seeking to increase $300 million at a valuation of over $6 billion. According to a person familiar with the situation, the new finance will likely be spearheaded by Middle Eastern crossover funds, with existing investors Tiger Global Management and Falcon Edge Capital boosting their stakes.
CRED was founded in 2018 by serial entrepreneur Kunal Shah as an app allowing credit-worthy individuals in India to pay their credit card bills and earn points. Later, the firm broadened its scope to include e-commerce payment financing, brand promotion, and short-term loans via Buy Now Pay Later (BNPL) alternatives.
CRED has amassed a loan book of over Rs 2000 crore in the last year and a half, with a low default rate possibly due to the fact that it primarily works with high-credit-worth customers. CRED Pay, the company’s payment operation, has a transaction value of $500 million per year on which it does not yet generate money.
The fintech startup has been marketing itself as India’s version of Affirm, a US-based company that allows BNPL to do online transactions. Affirm recently went public with a market capitalization of approximately $24 billion. CRED secured $251 million from current investors in its latest round of investment in October 2021, valuing the company at $4 billion. The business was believed to be in discussions to purchase two companies, Dineout and Wint Wealth, following this round of investment.
Kunal Shah, the founder and CEO of CRED, is one of the most well-known personalities in the Indian startup industry, and he has been aggressively scaling up the company’s commerce strategy by enrolling online-only consumer brands onto the CRED platform. The firm just launched a zero-commission CRED store onboarding platform, which exempts all brand partners from listing costs and commissions on each sale.
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