CRED in Talks to Raise $300 million Funding at $ 6 billion Valuation

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posted on 2 years ago — updated on 1 second ago

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CRED in its previous round of funding in October 2021, had raised $251 million from existing investors with a valuation of $4 billion

Fintech startup CRED is in talks with its existing and new set of investors for its next round of funding. While nothing is confirmed as yet, a Moneycontrol report claims that the company is eyeing to raise $300 million at an aggressive valuation of over $6 billion. As per a source involved closely with the development, the fresh funding is likely to be led by crossover funds from the Middle East and will also see the company’s existing investors Tiger Global Management and Falcon Edge Capital doubling their bets.

Founded by serial entrepreneur Kunal Sha h in 2018, CRED started as an app for India’s credit-worthy individuals to pay their credit card bills and earn points. Later, the company expanded its base into lending e-commerce payments, advertising for brands, and providing short term loans through Buy Now Pay Later (BNPL) options.

CRED has built a loan book of over Rs 2000 crore in the past year and a half, likely with a low default rate as it caters to only highly credit-worthy customers. The company’s payment business, CRED Pay has a recorded transaction value of $500 million a year- on which it doesn’t make money as yet.

The fintech startup has been aggressively pitching itself as India’s Affirm- a US-based company that allows BNPL for online transactions. Affirm went public recently at a market of over $24 billion.

CRED in its previous round of funding in October 2021, had raised $251 million from existing investors with a valuation of $4 billion.

Following this round of funding, the company was reported to be in talks to acquire 2 startups- Dineout and Wint Wealth.

CRED’s founder & CEO Kunal Shah, who is among the best-known names in the Indian startup ecosystem has also been aggressively ramping the company’s commerce play by onboarding online-only consumer brands on the CRED platform.

The company recently introduced a zero commission CRED store onboarding platform, waiving off listing fees for onboarding and commissions from any sale for all brand partners.

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