CRED

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For other uses, see Cred (disambiguation).

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CRED
Founded2018
Founder(s)Kunal Shah
HeadquartersBengaluru, Karnataka,
India
Websitecred.club

CRED is an Indian fintech startup,[1][2][3] based out of Bengaluru, Karnataka, which was founded in 2018 by Kunal Shah.[4][5][6] CRED's main feature is allowing users to make credit card payments through its app for which they get rewarded.[7] Later, CRED added features to allow users to make house rent payments[8] and introduced short-term credit lines.[9] CRED's business model and valuation has received criticism for being overvalued and lacking a solid monetization plan.[10][11]

History[edit]

CRED was founded in 2018 by Kunal Shah; by 2021, the company had onboarded over 5.9 million users and processed about 20% of all credit card bill payments in India.[12] As of April 2021, CRED offered five distinct products - CRED RentPay, CRED Cash, CRED Pay, CRED Store and CRED Travel Store.[13]

Funding and financial results[edit]

CRED raised funding from DST Global,[14] Sequoia Capital (India),[15][16] and Tiger Global,[17] among other investors, through four rounds of private funding so far[18] and is currently valued at $2.2 billion (April 2021).[19] CRED posted losses of Rs. 360.31 crore in the 2020 fiscal year (FY20),[20] caused primarily due to high expenditure on marketing and advertising.[21]

Marketing and advertising[edit]

CRED became the official partner (sponsor) for the Indian Premier League for three years from 2020 to 2022,[22][23][24] in a Rs. 120 crore deal.[25] CRED's advertising content and videos, often made in-house and featuring celebrities such as Rahul Dravid, Anil Kapoor,[26] Madhuri Dixit, Govinda Ahuja and Jackie Shroff[27] and Udit Narayan, Kumar Sanu, Bappi Lahiri[28] generated large discourse in news and social media[29][30][31][32] due to their unique advertising strategy, which has received both praise[33] and criticism.[34]

References[edit]

  1. ↑ "Kunal Shah's CRED raises $215 million to be India's latest unicorn with a valuation of $2.2 billion". Business Insider. Retrieved 2021-04-10.
  2. ↑ "Kunal Shah's Cred turns unicorn in less than three years; valuation slingshots nearly 3X to $2.2 billion". The Financial Express. 2021-04-06. Retrieved 2021-04-10.
  3. ↑ "Cred valued at $2.2 billion with new round, Kunal Shah says 'conscious call' to not monetise in first 2 years". cnbctv18.com. Retrieved 2021-04-10.
  4. ↑ "CRED - Crunchbase Company Profile & Funding". Crunchbase. Retrieved 2021-04-10.
  5. ↑ Patwa, Prasannata (2018-11-26). "Cred to launch product for credit card users". mint. Retrieved 2021-04-11.
  6. ↑ Gooptu, Biswarup; Sharma, Samidha. "Kunal Shah: FreeCharge's Kunal Shah is back with Fintech firm Cred". The Economic Times. Retrieved 2021-04-11.
  7. ↑ Bajaj, Karan. "Cred review: Makes credit card bill payments easier, rewards for timely transaction". The Economic Times. Retrieved 2021-04-11.
  8. ↑ "How to pay house rent online with your credit card using CRED app". www.timesnownews.com. Retrieved 2021-04-11.
  9. ↑ Staff (2020-04-20). "Cred Rentpay, Stash services launched in India". BGR India. Retrieved 2021-04-11.
  10. ↑ Dalal, Mihir (2021-02-04). "Forgive us for asking, but what's Cred's business model?". mint. Retrieved 2021-04-10.
  11. ↑ "Worth $806 mn, Cred's Rs 52-lakh revenue sparks valuation, business model debate". cnbctv18.com. Retrieved 2021-04-10.
  12. ↑ Dalal, Mihir (January 5, 2021). "Cred raises $81 million, announces Esop buyback worth $1.2 million". The Economic Times. Retrieved April 30, 2021.
  13. ↑ Khaliq, Ariba (April 25, 2021). "Great for the Good: Here's everything you can do with CRED". Times of India. Retrieved April 30, 2021.
  14. ↑ "Cred raises $80 million in a funding round led by DST Global, valuation now up at $800 million - Business News, Firstpost". Firstpost. 2020-12-02. Retrieved 2021-04-10.
  15. ↑ "VC firm Sequoia Capital closes second seed fund at $195 million to back startups in India, Southeast Asia". The Financial Express. 2021-03-25. Retrieved 2021-04-10.
  16. ↑ "Cred Turns Unicorn, Raises $215 Million At A Valuation Of $2.2 Billion". Moneycontrol. Retrieved 2021-04-10.
  17. ↑ "Kunal Shah's Cred Raises $120 Mn Series B Funding From Ribbit, Tiger Global And Others". Inc42 Media. 2019-08-26. Retrieved 2021-04-10.
  18. ↑ "India's CRED in talks to raise $200 million at $2 billion valuation". TechCrunch. Retrieved 2021-04-10.
  19. ↑ Manikandan, Ashwin. "Cred's valuation soars to $2.2 billion after fresh funding". The Economic Times. Retrieved 2021-04-11.
  20. ↑ Vardhan, Jai; Tyagi, Gaurav (2021-02-06). "Kunal Shah's CRED spent Rs 727 to earn a rupee in FY20". Entrackr. Retrieved 2021-04-11.
  21. ↑ "Big Spender CRED Banks On Rent Payments, Credit Lines For Revenue". BloombergQuint. Retrieved 2021-04-11.
  22. ↑ "BCCI announces CRED as Official Partner for IPL". www.iplt20.com. Retrieved 2021-04-11.
  23. ↑ Tewari, Saumya (2020-09-02). "BCCI signs on Cred as official partner for IPL in three-year deal". mint. Retrieved 2021-04-11.
  24. ↑ "After Unacademy, Cred Joins IPL 2020 As Official Partner". Inc42 Media. 2020-09-02. Retrieved 2021-04-11.
  25. ↑ World, Republic. "BCCI ropes in Indian financial brand CRED as official IPL partners in ₹120 cr, 3-yr deal?". Republic World. Retrieved 2021-04-11.
  26. ↑ www.ETBrandEquity.com. "CRED launches 90s inspired multi-film campaign featuring Anil Kapoor - ET BrandEquity". ETBrandEquity.com. Retrieved 2021-04-11.
  27. ↑ Bhatt, Shephali. "Who made Bappi Da sing love ballads for credit cards?". The Economic Times. Retrieved 2021-04-11.
  28. ↑ Misra, Shubhangi (2020-11-01). "With Bappi Lahiri to Govinda, India's ad industry is laughing at itself. Not everyone gets why". ThePrint. Retrieved 2021-04-11.
  29. ↑ "Is self-ridicule the new ad formula?". Deccan Herald. 2020-11-07. Retrieved 2021-04-11.
  30. ↑ "Govinda's New CRED Ad: Here's Why the Dancing Superstar Said Yes". Latest Odisha News, Breaking News Today | Top Updates on Corona - OTV News. 2020-10-29. Retrieved 2021-04-11.
  31. ↑ www.ETBrandEquity.com. "Jim Sarbh engages with audience in Cred's new ad film - ET BrandEquity". ETBrandEquity.com. Retrieved 2021-04-11.
  32. ↑ "CRED in the Indian Premier League (IPL): sixer or hit wicket?". The Ken. 2020-10-14. Retrieved 2021-04-11.
  33. ↑ "CRED… not everyone gets it: A copywriter's take". afaqs!. Retrieved 2021-04-11.
  34. ↑ www.ETBrandEquity.com. "Opinion: First you pay them, then you mock them? - ET BrandEquity". ETBrandEquity.com. Retrieved 2021-04-11.

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