This website requires JavaScript.
Lead Story/Feature

Cred targets USD 100 Mn in fresh funding

The Kunal Shah-led startup had raised USD 25 million in funding last year, with Sequoia Capital and Ribbit Capital leading the round.

Mar 20, 2019 by The Passage Team
Cred targets USD 100 Mn in fresh funding

Bengaluru-based Cred, which is trying to disrupt the way consumers pay their credit card bills, is in talks to raise USD 100 million in its next funding round. The track record of CEO Kunal Shah with regard to his FreeCharge venture is likely to come in handy for the funding.

Sources told Mint that Shah is looking to raise the funds at a valuation of USD 300 million. “There is immense in-bound interest to invest in Cred even though the company recently raised money and is only four months old,” one person close to the development told the daily.

Cred had raised USD 25 million in funding last year, with Sequoia Capital and Ribbit Capital leading the round. RPT Global (formerly RuNet), China’s Morningside Venture Capital and Russian investor Yuri Milner’s personal investment vehicle Apoletto are some other backers.

Sources close to The Passage, said Cred is also in talks with China-based fund Hillhouse Capital Group that raised USD 10.6 billion last year.

Apart from banks’ own apps, Cred competes with payments companies such as Paytm, PhonePe and Mobikwik. Most of the payments firms have integrated Unified Payments Interface (UPI) on their platforms to make direct bank transactions. Shah recently told the media that Cred is testing UPI-based payments to allow users to pay their credit card bills.

Cred is targeting the users of 44 million credit cards in India by offering them gift points for credit card bills settled through the platform that are redeemable across merchant outlets. Cred rewards users for timely credit card payments with offers and discounts on shopping, food and health services among other things. For instance, the platform has tie-ups with travel booking site ixigo, healthcare startup Curefit and holiday rental platform Airbnb.

Shah founded Cred in April 2018, one and half years after leaving mobile recharge service Freecharge. In 2015, online marketplace Snapdeal had bought Shah’s Freecharge for USD 400 million, a significant deal for the time. Shah is also an investor in more than 20 companies including Go-Jek, Zilingo, Unacademy, Shuttl, Chillr, Innov8, Jugnoo, Tapzo, Runnr, Flyrobe, Razorpay, Voonik and TVF.

The Passage Team

The Passage is committed to creating in-depth content over technology industry across Asia with a focus on emerging startups in the technology, healthcare, education, food, tech, travel & mobility segments.

Follow The Passage Team