Founded by Kunal Shah, Cred is a fintech startup. The firm is in advanced talks with investors to raise $100 Mn in its next round. After this deal, the total valuation of the firm will rest at $400 Mn. It’s indeed a commendable achievement by a few-months-old startup.
Bengaluru: Fintech startups seem like the next big in the market. With new apps repeatedly coming up on the block, it’s only a few startups who have stayed on. And there are even fewer startups who have revolutionized the ongoing transaction process. Cred strikes off as a part of the latter category. It is the second venture of Kunal Shah, right after the success of Freecharge. Freecharge was acquired by Snapdeal, and subsequently Axis bank, last year.
The Cred Strategy
It hasn’t even been a year for Cred and the revenues have already started rolling in. A big reason behind this could be the lucrative schemes the app offers. Cred incentivizes credit card payments with reward points. The members-only platform rewards users for paying their card bills on time. Easy peasy!
Moreover, individuals with high credit scores can make their card payments on the app’s platform itself. Timely payments fetch rewards. These rewards can then be redeemed as offers and discounts for shopping, health services and other sites. The firm has partnered with major brand names like Furlenco, Ixigo and CureFit. Additionally, the app also helps discover hidden charges in bank-issued cards and points them out to customers.
The app, even before its release, had raised $30 Mn in June, last year. The major investors then were Sequoia Capital, RPT Global, and Morningside Ventures. Recently, it came to light that the firm is in talks to raise another $100 Mn. The talks are ongoing between Hillhouse Capital, few existing investors and the firm.
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If the deal bears fruit, the few-months old startup would reach a valuation of $400 Mn. It’s not very common for infant startups to reach higher valuations so early on in their journey. Keeping the expertise of Kunal Shah and the business model of the firm in mind, Cred is, undoubtedly, on its way to success.