Fintech startup Cred raises fresh funds almost doubles its valuation

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.

• What's The Story?

Serial entrepreneur Kunal Shah-founded Cred is continuing its fundraising spree and has closed a round of roughly $251 million as a part of its Series E round, co-led by Tiger Global Management and Falcon Edge Capital. The company closed the round over the weekend at a valuation of $4.01 billion. With this, Bengaluru-based Cred has almost doubled its valuation since April when it raised $215 million at a $2.2 billion valuation to enter into India’s coveted unicorn club.

New investors joining Cred’s cap table as a part of the Series E fundraise include London-based Marshall Wace and Steadfast Venture Capital, with existing investors including DST Global, Insight Partners, Coatue, Sofina participating as a part of the round, said the individuals cited above.

Cred was launched in 2018 to help users pay credit card bills easily and earn rewards. It has since expanded to lending through Cred ‘Cash’, and also enabled online commerce and brand discovery through its ‘Store’ and ‘Commerce’ platforms.

Currently, Cred ‘Cash’ provides members an instant line of credit, with interest rates ranging from 12% to 15%, and partners with non-banking finance companies (NBFCs) to fund these loans.  The platform counts IDFC First Bank among others as its NBFC partners.

Earlier in August, Cred also launched peer-to-peer (P2P) lending for members on its platform, through the newly launched Cred ‘Mint’ feature.

The company also gained a following on social media in recent months after releasing web commercials with quirky storylines.

• What's Next?

Be it Neeraj's Javeline ad or Dravid's traffic jam ad cred has recently attracted a lot of people but what investors will like most is that it continues to grow its investor's money. Indian startups have been on a tear in 2021, with several companies entering the unicorn or $1 billion club, while other high-profile names including food delivery app Zomato and hotel aggregator Oyo listing or pursuing a debut on domestic stock exchanges. With these recent developments, one can clearly say that the Indian startup ecosystem is now moving towards a whole new journey.