Indian fintech startup CRED raises USD 251 million in Series E funding
Category: #business  By Akshay Kedari  Date: 2021-10-20
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Indian fintech startup CRED raises USD 251 million in Series E funding

Bangalore-based fintech startup CRED has reportedly secured USD 251 million in Series E funding round led by Tiger Global Management LLC and Falcon Edge Capital LP. This is the company’s third funding round in 2021.

If sources are to be believed, the fresh funds will be used for investments into other fintech startups. The funding round also saw participation from Steadfast Capital Management LP, Marshall Wace LLP, DST Global, Coatue Management LLC, Insight Partners, Sofina SA, Dragoneer Investment Group, and RTP Global.

The startup was evaluated at USD 2.2 billion in the April 2021 investment round, up from a valuation of USD 806 million in January 2021. The company’s value reached USD 4.01 billion following the recent fundraise.

For the record, Cred was founded in the year 2018 by Kunal Shah. The three-year-old startup helps people to enhance their credit score by encouraging them to pay credit card bills in the stipulated time period. It currently has around 7.5 million members and offers them exclusive access to a wide range of premium brands.

Analysts cite that India has 57 million credit card users as compared to a mere 830 million debit card users. The credit card market is highly concentrated with SBI, ICICI, HDFC, and Axis bank controlling approximately 70% of the total market.

It is worth noting here that very few startups have taken a platform-based approach, which prioritizes the acquisition of customers before expecting revenue generation. Credit cards are an aspirational product for Indian users and their limited penetration in the economy presents companies like Cred with a huge opportunity.

In related news, Cred recently invested USD 5 million in CredAvenue, a one-stop corporate debt solution, which connects corporates seeking loans with investors and financial organizations. CredAvenue is currently in talks to support another fintech company Uni at a valuation of over 300 million.

Source Credits—

https://techcrunch.com/2021/10/18/indian-fintech-cred-valued-at-4-billion-following-251-million-fundraise/

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Akshay Kedari    

Akshay Kedari

Akshay holds a Bachelor’s degree in computer engineering. Despite having a penchant for software development and the like, Akshay took to writing as a career owing to his passion for the field. Presently, Akshay writes articles for itresearchbrief.com and a few oth...

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