FinTech: Indian Fintech Startup Cred Raises $215M, Turns Unicorn
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.
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
Latest Alternative Investment News
In a unique plug for bitcoin’s adoption, MicroStrategy (NASDAQ: MSTR), the business information firm, has decided to pay its non-employee directors in bitcoin. The company has been a trendsetter, setting…
Alternative Investments/Digital: Yet Another Bitcoin ETF Application; Galaxy Digital Is The Latest Hopeful
Galaxy Digital, the cryptocurrency investment firm led by Mike Novogratz, has filed an application with the SEC to launch a bitcoin ETF that will trade on the NYSE Arca. The…
Microsoft (NASDAQ: MSFT) may buy Nuance Communication (NASDAQ: NUAN) at a valuation of $56 per share, according to Bloomberg, which cited unnamed people who were familiar with the matter. The…
Venture Capital: Supervest, A Platform That Matches Loan-Seeking Merchants With Investors, Is Seeking Funds
Supervest calls it a new asset class. Merchant cash advances (MCA) are a form of short-term financing for merchants in the form of a sales agreement in which capital is…