Credit card payment platform Cred is in advanced discussions to raise $100-200 million in a new funding round, sources familiar with the matter revealed. The round, which is expected to be led by Singapore sovereign fund GIC, would value the Bengaluru-based startup at approximately $4 billion, a significant drop from its previous $6.4 billion valuation in 2022.
The potential down round reflects the ongoing valuation correction in the global technology sector. Notably, other major shareholders of Cred such as Peak XV Partners, Tiger Global, Ribbit Capital, and QED Innovation Labs are also expected to participate in the round.
“Discussions are underway with investors… the valuation will be lower than its 2022 round,” said one of the persons cited earlier in the story. “The plan is to raise fresh funds on the back of improved financial performance and a reduction in the company’s financial burn.”
In 2022, Cred had raised $140 million in a mix of primary and secondary transactions, led by GIC, when its valuation jumped from $3.8 billion to $6.3 billion.
Sources close to the company say the startup is focused on achieving profitability as it charts a roadmap for a potential initial public offering (IPO) within the next two years.
“The internal thinking is to have a few profitable quarters before its IPO… The reduction in valuation is in line with how it will price its IPO,” said a person familiar with the goings-on at the company.
While Cred has not publicly disclosed its latest financials, insiders report that the firm achieved total revenue of around Rs 3,000 crore in FY25, up from Rs 2,473 crore in FY24. Operating losses also narrowed significantly from Rs 1,024 crore to Rs 609 crore.“It has also reduced its cash burn by over 50% over the last few years and has around Rs 1,000 crore of cash in the bank,” the person said.
The fundraising talks come amid a broader reset in tech sector valuations. Global players such as Stripe and Klarna have seen their valuations slashed, reflecting a shift in investor sentiment towards sustainable growth and profitability. Stripe’s valuation dipped from $95 billion in 2021 to $50 billion, while Klarna’s valuation plunged to $6.7 billion from $46 billion, though it is reportedly eyeing a recovery to over $15 billion in its delayed IPO.
As part of its profitability push, Cred launched loans against mutual funds earlier this year, expanding beyond its unsecured personal loan portfolio. The company also operates Newtap Finance, which reported total assets under management of Rs 1,141 crore and a net loss of Rs 5.3 crore as of December 2024. Newtap Finance is owned by Newtap Technologies, which is wholly controlled by Cred founder Kunal Shah.
Founded in 2018, Cred initially began as a platform for credit card bill payments. Since then, it has diversified into commerce, credit, insurance, and UPI-based transactions. The company is currently ranked seventh among UPI payment apps based on transaction volume. In March 2025, it processed 144 million transactions and facilitated Rs 55,000 crore in payments, placing it among the top players by value in the UPI ecosystem.
Despite multiple attempts, Cred declined to comment on the ongoing fundraise discussions.
As the company tightens its operations and optimizes cash flow, industry watchers see this round as pivotal to its IPO ambitions and long-term sustainability in India’s competitive fintech landscape.
