Fintech platform Cred is conferring with Hillhouse Capital and a few existing investors to raise USD 100 million, ET reported citing two persons familiar with the development.
Hillhouse is an early backer of Chinese technology major Tencent and e-commerce firm JD.com.
The deal is pegged to take the six-month-old financial technology platform’s valuation to USD 400 million. Existing investors Sequoia Capital, Apoletto Asia and Ribbit Capital are expected to participate in the funding round.
“The company has received term sheets and the due diligence process is underway. The round is likely to close soon,” ET quoted the source as saying.
Sequoia owns more than 15% of Cred.
“Hillhouse will likely pick up a small stake with Sequoia taking the lead,” the source said.
Cred is the pet project of Freecharge founder Kunal Shah who sold the online bill payment platform to Snapdeal for USD 400 million in 2015.
Hillhouse is one of Asia’s largest investment firms. The Chinese company has raised USD 10.6 billion last year for its latest fund. The India portfolio of Hillhouse includes Swiggy, CarDekho and Hector Beverages.
Cred is a members-only app to pay multiple credit card bills. “This product is for people who have high credit scores. Our focus here is to reward people who have paid their bills on time. And right now, credit score is an objective metric," Shah said in an interview.
Cred has partnered with more than 30 brands such as Airbnb, CureFit, BookMyShow, Urban Ladder, FreshMenu and ixigo to offer rewards, experiences and upgrades every month.
The platform is targeting the 46 million plus credit card users in India.
“In the long run, Cred may enter the broader credit card market which is underpenetrated. With high-quality data that the company is collecting, they will be in a position to disrupt the credit card business directly,” an industry expert told ET.
Cred has recently beta tested UPI enabled payments on its platform.