Kunal Shah’s CRED doubles its valuation to $4 billion in less than six months

• CRED was valued at $2.2 billion in April, when it raised $215 million in a Series D round.
• The company has raised $600 million to date from investors like Tiger Global, DST Global and others.
• Kunal Shah claims that about 25-30% of all credit card bill payments in India are processed by CRED.

Kunal Shah-led credit card payments app CRED has raised $251 million in a round led by existing investors Tiger Global and Falcon Edge. The company’s valuation has doubled to $4.01 billion with this round.

CRED was valued at $2.2 billion in April, when it raised$4round.

London-based Marshall Wace and Steadfast Venture Capital also participated in this round, along with existing investors DST Global, Insight Partners, Coatue, Sofina, RTP and Dragoneer.

It was first $4 by Mint.

A CRED spokesperson has confirmed the development to Business Insider.

Founded in 2018, CRED started off as a credit card bill payments app. Over the years, it has entered e-commerce, lending, payments and now investment segments

Shah, the founder and chief executive officer of the fintech startup, claims that about 25-30% of all credit card bill payments in India are processed by CRED. The company launched its lending business last year and claims to have a loan book of over ₹2,000 crore with non-performing assets at under 1%.

Looking at these metrics, CRED introduced a$4 on its platform in August this year. This feature would allow 7.5 million users to invest up to ₹10 lakh in a capital pool, which will be used to offer loans to other CRED users.

The loans will actually be disbursed at an interest rate of 12-13% annually. Of which, upto 9% will be rewarded to those investing in the product. The company believes that the exclusivity of CRED would reduce the number of default loans.

Notably, CRED only allows users above a certain credit score to set up an account on the platform.

The company has raised $600 million to date.

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