Fintech Unicorn Cred Aims to Raise $100-200 Million Fund
Fintech unicorn Cred is seeking to raise $100 million to $200 million in a fresh funding round, which would reduce the valuation of the Kunal Shah led firm to $4 billion, a significant drop from its $6.4 billion valuation set in 2022.
For the purpose of securing more funds, the Bengaluru headquartered company is in the process of speaking with its present investors, which include Tiger Global, Ribbit Capital, Peak XV Partners, Singapore's state fund GIC, and QED Innovation Labs.
It's worth mentioning here that in 2022, Cred secured $140 million in its Series F funding round, which was headed by GIC, when the company's valuation was done at $6.4 billion.
The additional funding will support Cred with the resources to implement the second phase of growth while growing top line and cash burn reduction. The financial institution is eyeing profitability and would most likely launch an IPO over the next couple of years.
In the fiscal year 2023-24 (FY24), Cred's operational revenue surged by an impressive 71%, reaching Rs. 2,397 Crore, up from Rs. 1,400 Crore in the previous fiscal year. However, the company's net loss also increased by 22%, rising to Rs. 1,644 Crore from Rs. 1,347 Crore in FY23, despite the growth in revenue.
Started in 2017 as a platform for credit card bill payments, Cred, Shah's brainchild, has now moved towards a mega app strategy to expand its fintech vision.
Cred currently provides various services, such as UPI payments, utility bills, car care, and travel experiences. To take on players like Zerodha, Groww, and PhonePe, it also picked up the investech platform Kuvera earlier last year.
In February, the company introduced CRED Cash+, a loan against mutual funds product for its customers, pitted against rivals Bajaj Finserv, BharatPe, Jio Financial Services, and smallcase.
For the purpose of securing more funds, the Bengaluru headquartered company is in the process of speaking with its present investors, which include Tiger Global, Ribbit Capital, Peak XV Partners, Singapore's state fund GIC, and QED Innovation Labs.
It's worth mentioning here that in 2022, Cred secured $140 million in its Series F funding round, which was headed by GIC, when the company's valuation was done at $6.4 billion.
The additional funding will support Cred with the resources to implement the second phase of growth while growing top line and cash burn reduction. The financial institution is eyeing profitability and would most likely launch an IPO over the next couple of years.
In the fiscal year 2023-24 (FY24), Cred's operational revenue surged by an impressive 71%, reaching Rs. 2,397 Crore, up from Rs. 1,400 Crore in the previous fiscal year. However, the company's net loss also increased by 22%, rising to Rs. 1,644 Crore from Rs. 1,347 Crore in FY23, despite the growth in revenue.
Started in 2017 as a platform for credit card bill payments, Cred, Shah's brainchild, has now moved towards a mega app strategy to expand its fintech vision.
Cred currently provides various services, such as UPI payments, utility bills, car care, and travel experiences. To take on players like Zerodha, Groww, and PhonePe, it also picked up the investech platform Kuvera earlier last year.
In February, the company introduced CRED Cash+, a loan against mutual funds product for its customers, pitted against rivals Bajaj Finserv, BharatPe, Jio Financial Services, and smallcase.
