Serial entrepreneur Kunal Shah-founded and promoted Cred continues its fundraising spree and has secured a round of roughly $251 million. Credit card payment app CRED has raised $251 million in its Series E round, taking the fintech startup’s value at $4.01 billion. The investment round was co-led by current investors Tiger Global and Falcon Edge.
The firm also added two fresh investors to its list in London-based Marshall Wace and Steadfast Venture Capital. The round also witnessed cooperation from DST Global, Insight Partners, Coatue, Sofina, RTP and Dragoneer.
This funding round nearly doubles CRED’s valuation after it had raised $215 million in its Series D round at a valuation of $2.2 billion in April. Before that, the organisation had raised $80 million in its Series C round headed by DST Global Partners in December last year.
It’s worth remarking that the Kunal Shah-led business has closed its three funding rounds within a year. It will meet the peers of DealShare, Apna, CityMall, Spinny and OfBuisiness, which have also raised or are in the manner of closing three funding rounds within a year.
CRED is a members-only credit card bill payment platform that rewards its members for making their credit card bills on time. Cred is the youngest Indian startup to reach the $2 Billion valuation mark earlier this April.
With over 1,300 brand associates, CRED claims to have a customer base of 7.5 million and 20% share of all credit card bill payments in India. Freshly, CRED had calculated a 208X growth in its operating revenues to Rs 108 crore during the fiscal year closing March 2021.
As per the projections, yearly losses are slated to be approximately Rs 562 crore in FY21, increasing by 55% as balanced to Rs 363.2 crore in FY20. These numbers are not from the audited statements as CRED is yet to file them for FY21.
Cred operations are based on an app that rewards Credit cardholders when they pay different bills through its platform. Cred offers different services to its customers including special e-commerce deals. If a person wants to register on the Cred platform, they should have a minimum of 750 credit score. It helps Cred to have a database of premium credit cardholders.