Cred pays out rewards for paying credit card bills on time.

Cred, a fintech founded by Kunal Shah, has just achieved the distinction of becoming the second-fastest Indian startup to emerge as a unicorn, that too within a mere 29 months of launch. It raised $215 million in a Series D round at a valuation of $ 2.2 billion, as investors continued to favor its business model of rewarding credit card payments made on time. (Times of India)

Notably, Cred valued at around $ 800 million in December 2020. The start-up has raised around $ 300 million within the last three months, and over $ 440 million in total since its founding.

New investor Falcon Edge Capital co-led the round with existing investor Coatue Management. Insight Partners came in as a new investor while existing investors such as DST Global, RTP Global, Tiger Global, Green Oaks Capital, Dragoneer Investment Group, and Sofina also participated.

Cred

Premium quality cardholders such as those with a minimum credit score of 750, can become a Cred member.

The platform, which launched in 2018, boasts of nearly 6 million members who use it to pay their credit card bills. Cred has also now diversified into lending and rental payments.

In a note to his team members, Shah wrote:  “While valuation is a milestone that many celebrate, we view it as a responsibility and an opportunity to create member value. We’ve grown rapidly over the past 2.5 years, with 35% of premium credit card holders and processing 22% of all credit card payments in India on a monthly basis. As the credit card category continues to grow rapidly in India, our opportunity is to imagine new use-cases, empower Cred members to use credit responsibly, and reward them for good financial behavior.”

Related Story:  Goldman Sachs Eyes JetBlue’s Credit Card Business