CRED has raised $251 million funding in a Series E investment round at a $4.01 billion valuation, nearly double than its previous valuation at $2.2 billion. Kunal Shah-led credit card bill payment platform’s fresh funds raise, according to sources, was co-led by existing investors Tiger Global and Falconedge. Two new investors - Marshall Wace and Steadfast joined the new round. Sources told BusinessToday.in that investors including DST Global, Insight Partners, Coatue, Sofina, RTP, and Dragoneer have increased their shareholding in CRED with this round. An official spokesperson of CRED confirmed the report on the fresh fundraise. The fintech startup has transformed from a credit cards payment, rewards platform to offering lending services in partnerships with IDFC bank and various non-banking financial corporations (NBFCs). The fintech sector in India has seen heavy capital deployment this year raising $4.6 billion till September. CRED has raised an aggregate amount of $547 million from a bunch of investors this year, diversifying its financial services portfolio simultaneously to target the underserved market in India.
In terms of userbase, CRED says that over 7.5 million individuals (35 per cent of premium credit-card holders) are part of the platform, accessible to anyone with a credit score >750. The company says that the users can manage multiple credit cards easily, paying bills from a single interface through netbanking, UPI and through autopay feature.
Nearly 70 per cent of members have multiple cards CRED facilitates 25 per cent of credit card bill payments in India, as per CRED’s official handout.
For financial institutions, the firm claims to offer a platform for the new products including CRED Cash, an instant, three-step personal credit line; and CRED Rent Pay, through which members can put their monthly rent on credit card instead of cash. CRED’s commerce offerings include visibility and network services for independent brands to connect with the users on the platform.
Also read: BharatPe, CRED, Groww in CB Insights' list of top 250 fintech companies of 2021 Also read: India has second largest number of unicorns; Sequoia top investor, says PwC India report