Kunal Shah’s CRED doubles its valuation to $4 billion in less than six months
CREDwas 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 Shahclaims that about 25-30% of all credit card bill payments in India are processed by CRED.
CRED was valued at $2.2 billion in April, when it raised $215 million in a Series D round.
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.
AdvertisementIt was first reported 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 peer-to-peer lending option 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.
AdvertisementNotably, 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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