The concept of credit is not a novel one. People have been using credit since the beginning of time. Credit is essential when our capital cannot support certain investments, and credit cards have certainly made them more accessible. On the other hand, paying credit card bills is a priority that is equally difficult to manage. This is why Cred came up with the novel idea of creating a platform to assist Indians in paying their credit card bills on time while providing them with instant offers and rewards.
Cred is a Bengaluru-based fintech company that allows its users to make credit card payments through its app while receiving exclusive offers and other benefits online. Cred also offers flexible credit lines, Rent Pay, Cred Cash, and Cred Mint, which enable lenders to lend their extra cash to borrowers with respectable credit scores at interest rates of around 9% annually.
Get more information about Cred, including its history as a startup, founder, tagline, logo, business model, revenue model, funding, rivals, and other details.
CRED enables credit card users to pay their bills through its platform and offers rewards for each transaction. The users of the fintech platform can pay their rent on their homes and take advantage of all the advantages of the short-term credit lines that the app now provides. Bangalore serves as the home base for Cred.
The business takes the utmost precautions to protect user data and information. As a result, the app is secure. The company Cred’s founder is Kunal Shah. He started the business in 2018 and frequently referred to Cred as a TrustTech business rather than a Fintech. This is because his initial inspiration for founding Cred was to address the lack of trust in Indian society, which he believed to be the key to the country’s economic success. Kunal Shah, the founder of The Cred, is a well-known figure in the startup community and has already invested in several businesses.
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Cred: A Successful Startup
The aim was very straightforward. The goal was to build a framework for more organized and better living. Kunal Shah wished to grant those with high credit scores more privileges and benefits. Therefore, it was crucial to generate a flywheel effect for more people to raise the scores.
Everyone has placed their attention on the general public, from startups to the government. The company’s founder wished to concentrate specifically on the people, on the responsible citizens who pay their taxes on time. He believed that this was the first time anyone had resolved their issues.
Cred was established with the primary goal of resolving taxpayer issues while also rewarding them with alluring benefits.
Cred Founder – Kunal Shah
The CEO and founder of Cred are Kunal Shah. He is an Indian businessman credited with starting new businesses a second time. Kunal earned a degree in philosophy from Wilson College and later enrolled in an MBA program at the Narsee Monjee Institute of Management Studies. Still, he left the program in the middle of the semester to pursue his dreams of starting his own business.
Along with Sandeep Tandon, Kunal began his entrepreneurial career with PaisaBack, a website for users to access cashback, coupons, and other offers. He ultimately decided to cease operations to launch FreeCharge, which the two co-founded in 2010.
In April 2015, Snapdeal purchased FreeCharge, but Shah continued to run the business independently. Cred was established in 2018 and became a unicorn on April 6, 2021. On the other hand, Axis Bank purchased FreeCharge in July 2017. Here is a look at the FreeCharge business model and how it generates revenue.
In 1983, Kunal Shah was born in Mumbai. He enjoys playing poker and chess as hobbies. He enjoys eating guacamole and chips. He adores G.B. Shaw’s plays and the philosophy of Socrates.
Cred – Acquisitions
Hipbar, Happay, and small case are the three companies that Cred has so far acquired. The purchase of Hipbar on October 21, 2021, was followed by the completion of the $400 million purchase of Smallcase on August 2, 2022.
On May 13, 2022, Swiggy had already acquired Dineout, a step ahead. According to reports dated November 19, 2021, the company is also looking to purchase the Noida-based platform for dining and restaurant tech solutions, Dineout, and the alternative investment platform, Wint Wealth. Between $25 and $50 million was reportedly spent on the Dineout acquisition, while $50 million is thought to be spent on the Wint Wealth acquisition.
According to reports from December 1, 2021, Cred was interested in buying Happay. Happay was expected to receive a combination of cash and stock under the terms of the deal, which valued the company at over $150 million. Following the acquisition of Hipbar in October 2021, Happay is the company’s second acquisition.
Cred – Revenue and Growth
Cred has grown consistently over the years. A startup established in 2018 finally became a unicorn on April 6, 2021, when it closed its Series D round and raised $215 million. Cred’s valuation reached $6.5 billion in 2022 after a $200 million funding round, according to Kunal Shah in a statement made public in April 2021. Cred controls “22% of all credit card payments in India every month.”
On July 10, 2021, Kunal Shah added to his LinkedIn profile and shared some highlights of Cred’s accomplishments in June.
On August 20, 2021, Cred unveiled Cred Mint, a peer-to-peer lending feature that will be available to Cred’s users. Cred has introduced Cred Mint with Liquiloans, a P2P NBFC that has received RBI approval.
Cred Mind will only be accessible to users with respectable credit scores; it is also stated. With the help of this feature, Cred members can now extend loans to other reliable Cred members at predetermined interest rates. You can use Cred Mint to lend money to another credit-worthy user so they can make about 9% on each credit.
Cred may soon enter the wallet payments market thanks to the impending acquisition of HipBar, a Chennai-based startup that delivers alcohol. On October 21, 2021, it completed the acquisition of Hipbar. To make the purchase possible and subsequently receive the PPI license, founder Kunal Shah and his brother have already joined the HipBar board.
Cred – Partnerships
To provide customers with the finest experience after the bill payment cycles, Cred partners with luxury and premier brands.
The following are a few of Cred’s other affiliations:
In collaboration with the P2P non-bank LiquiLoans, Cred established Cred Mint, a tool that enables users to put their savings into a capital pool.
Razorpay and Cred collaborated to launch Cred Pay. With the aid of this tool, customers can quickly complete their transactions while using their CRED coins.