CRED is a Bengaluru based fintech startup that was found by Kunal Shah in 2018. In the seed capital investment, the Indian credit card bill payments app received an investment of $1 Million.
CRED’s capitalization table is currently distributed to employees at 10% and people who have vested stocks are permitted to sell up to 50% of their shares back to the start-up during their first ESOP liquidity program.
Since the last year, the customer base of CRED has doubled to about 5.9 million. The start-up’s median credit score of the customer is about 830, any credit score about 720 is an excellent score, and 30% of their user base now holds a premium credit card.
The start-up is now discussed in the most talked start-ups in India after its exponential increase in the valuation as well as an increase in their amount of capital within a short period of time.
CRED has also gained popularity during IPL’s 13th edition. The start-up was the official partner of IPL after they signed a three-year deal with BCCI, Board of Council for Cricket in India.
According to CRED, 20% of their credit card bill payments are processed by it and 25% of the premium credit cardholders in India are on CRED’s platform.
The nascent Direct-to-customer market in India is expected to be worth $100 Billion by 2025 giving exponential rise to the Indian market.
For CRED’s model to work the GDP of India, whose average annual income is about $2000, needs to be increased and for that to happen, females need to participate more.
Less than 10% of the female population in India is currently a part of the workforce compared to be over 90% female population in China.
CRED Raises $81 Million In Series C Funding Round
The fast-growing Indian start-up has raised $81 Million at a valuation of $806 Million in the Series C funding round.
The ESOP buyback, worth $1.2 million, is a part of the 81 Million series C round funding of CRED. The round was led by the existing investors DST Global.
Participation from Sequoia Capital, Ribbit Capital, Tiger Global, General Catalyst, Sofina, SatyanGajwani of Times Internet andCoatue was seen.