Team Startupcity

·  Cred raises Rs 617 crore (~$72M) in fresh funding led by GIC.

·  Valuation drops 45% from $6.4B (2022) to $3.5B.

·  Revenue up 66% YoY in FY24; operating losses reduced significantly.

Bengaluru-based fintech company Cred has raised  Rs 617 crore (approximately $72 million) in a fresh funding round, marking a significant 45% drop in its valuation from its 2022 peak. According to The Economic Times, the Kunal Shah-led startup is now valued at $3.5 billion, down from $6.4 billion two years ago.

GIC, the sovereign wealth fund of Singapore, led the latest funding round with its Lathe Investment arm investing  Rs 354 crore. RTP Global chipped in with  Rs 74 crore, followed by Sofina Ventures with an investment of  Rs 25.8 crore and Kunal Shah's family office QED Innovation Labs which contributed  Rs162 crore for primary capital only.

The existing investors in Cred include high-profile investors such as Tiger Global, DST Global, and Peak XV Partners. GIC also had led the prior $140 million funding round in 2022.

Despite the valuation cut, the timing aligns with signs of financial progress at Cred. The company reported a 66% year-on-year increase in revenue, reaching  Rs 2,473 crore in FY24. Operating losses reduced significantly to  Rs 609 crore from  Rs1,024 crore the previous year, although net losses including ESOP expenses and taxes rose by 22% to  Rs1,644 crore.

Cred has been expanding its offerings beyond its core credit card bill payment services. The platform now provides unsecured personal loans, secured lending against mutual funds, and vehicle services through its Cred Garage, which manages over 11 million vehicles. Its lending partners have built a loan book of  Rs15,000 crore using Cred’s infrastructure.

This diversification is one aspect of Cred's overall strategy to transform from a credit-centric interaction platform to an extensive financial services ecosystem. The company has introduced features like credit score monitoring, hidden fee alerts, shopping rewards, and FASTag management as it tries to increase user interaction and revenue channels.