Cred raised $ 30 million in seed funding
In a round led by established investor DST Global, credit card repayment platform Cred has raised $80 million.
Other existing investors, Ribbit Capital, Sequoia Capital, and Tiger Global, also participated in the round, said an individual deprived of growth.
This is the series B capital infusion round of the Kunal Shah-founded startup, assigning the company a valuation of $800 million.
This represents a major bump up from the $450 million valuations in August last year at which Cred performed its previous $120 million funding exercise. In its seed round in late 2018, the start-up raised $30 million.
Shah also co-founded the Freecharge online bill payment site, which is currently owned by Axis Bank, a private lender. Late Monday evening, Cred did not respond to ET’s request for comment.
In exchange for loyalty points called Cred Rewards, the start-up helps clients to pay their credit card bills and has an e-commerce website called Cred Shop.
The business model includes a monetization approach where, in exchange for improved contributions and fiscal discipline, the fintech charges its partner company a specified fee.
Cred is a company based in Bengaluru and was founded by Kunal Shah in 2018. They’re involved in financial technology and personal finance. The organization is committed to the security of its members’ data and knowledge.
CRED is working on the guiding principle of complete disclosure and opt-in consent. The security protocols and technology implementations of the company together with Regulatory enforcement is how participants’ information is processed, stored, and used.
Although the incentives encourage interaction, the store is an e-commerce site that enables the purchase to be discovered at the end. The company has over 1,300 brands as partners, including, among others, Samsung, Myntra, and Curefit.
The business initiated an aggressive marketing campaign to attract credit-worthy consumers during the new Indian Premier League. Over the last two years, it has had about three million customers aboard.