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US-based General Catalyst eyeing Cred as its first India bet

General Catalyst which manages USD 3.75 billion in assets has invested in global companies such as Snap, Stripe and Airbnb

Jul 9, 2019 by The Passage Team
US-based General Catalyst eyeing Cred as its first India bet

Bengaluru-based online credit card bill payment company Cred, might become the first Indian company to get investment from US-based VC firm General Catalyst. People in the know told Economic Times that Cred is in talks with General Catalyst to be a part of its Series B round in which it aims to raise around USD 120 million.

According to three people in the know of the matter, this round will be led by its existing investors which includes Sequoia Capital, Ribbit Capital and Yuri Milner’s Apolleto. Chinese fund HillHouse Capital is the new investor who will participate in the Series B round of investment.

General Catalyst which manages USD 3.75 billion in assets has invested in global companies such as Snap, Stripe and Airbnb. One of the sources said General Catalyst would most likely invest small amount.

“The company has finalised a set of investors who are leading the round, but they may look to expand the capital raising further,” said one of the people.

Cred is Kunal Shah’s second venture after he sold his digital payment company Freecharge to online e-commerce company Snapdeal for USD 400 million. The company allows consumers to pay their credit card bills through its mobile app. Users receive virtual points which they can redeem across merchants like coffee shops, movie theatres, among others. The company works closely with banks to innovate on its credit business as it looks to offer more to its prime credit card consumers.

Cred is likely to be valued at USD 400-500 million in this round, an exponential jump from the USD 75 million valuation it got from the previous round of funding.

In an interview with The Passage, Shah said as a second time entrepreneur it’s easier to raise money. “It is easier but it also comes with more responsibility to give it back. We are in a zone where we are thinking whether this can create value for people. If you look at all the major successes in China, all of them are second- or third-time founders now,” Shah told The Passage.

“The company may create products in order to allow credit card purchases to be converted into equated monthly instalments, enabling consumers to use these cards for different types of transactions,” said another person in the know.

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.

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