InsurTech

Cred Enters Insurance Sector with CRED Garage

• ByStartupStory     |    November 4, 2024

In a significant expansion, fintech unicorn Cred, led by Kunal Shah, has entered the insurance sector in collaboration with Go Digit General Insurance, ICICI Lombard, and Zurich Kotak General Insurance. This development allows Cred users to access motor insurance through the company’s vehicle management platform, CRED Garage, with exclusive benefits based on their credit scores.

The motor insurance feature, launched under CRED Garage, offers users discounts tailored to their credit profiles. “We are offering insurance from our partners to CRED members via CRED garage, with benefits such as credit score discount, reminders to check challans, PUCC, and more,” the company said to Inc42. “There is a significant overlap between credit card users and car owners in India, and just like we enabled them to manage multiple cards easily, CRED garage is a platform for them to manage multiple responsibilities with regard to their vehicles.”

The Bengaluru-based company introduced CRED Garage in September 2023 to meet the various vehicle-related needs of its members. Since its launch, CRED Garage has reportedly gained traction with over 4.2 million users and more than 7 million registered vehicles. Through its DigiLocker integration, the platform also enables users to digitally access documents such as driver’s licenses, registration certificates, and insurance papers, further simplifying vehicle management for its users.

Benefiting from the addition of new features like motor insurance, Cred reported a 58% growth in its monetised customer base in FY24. The company’s recent efforts also include rolling out CRED Money in July 2023, a feature enabling members to manage their bank account balances, set reminders for recurring payments, and analyse spending patterns.

Furthermore, Cred has collaborated with L&T Finance to offer unsecured personal loans, alongside the launch of CRED Guarantee, a tool designed to support timely credit card payments. Reflecting on the ongoing expansion, Kunal Shah shared that CRED is actively working on plans to introduce new products over the next year to continue scaling its services and monetisation.

This development, originally reported by ET, reflects CRED’s sustained focus on providing value to its user base while diversifying its financial offerings.

 

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