Credit Financing: Credit Valuation Almost Doubled After $ 250 Million Funding

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Bombay: Cred has raised $ 251 million in a Series E funding round co-led by Tiger Global and Falcon Edge for a valuation of $ 4.01 billion, underscoring the relentless interest Indian fintech is generating among investors.

The fundraiser nearly doubled the valuation of the Bengaluru-based startup, which was $ 2.2 billion in April when the company raised $ 215 million. It was valued at $ 800 million less than a year ago, when it raised $ 80 million in November 2020. The latest round saw two new investors – Marshall Wace and Steadfast Venture Capital – join the table. capitalization of the fintech startup. Existing investors DST Global, Insight Partners, Coatue and Sofina also participated in the fundraising.

Media reports said the company plans to use the funds to expand its existing product line and expand financial service offerings for customers.

Diversified offers

Kunal Shah started Cred three years after selling Freecharge to Snapdeal for $ 400 million in 2015. Axis Bank later bought the fintech startup at a 90% discount. And what started out as a credit card reimbursement platform is now a diverse business that includes e-commerce, digital payments, wealth management, bank loans, and peer-to-peer lending.

  • The e-commerce platform, called Cred Store, charges partner companies a fee to direct its user base to their products. It also charges its banking partners a fee reduction to improve customer tax compliance.
  • The lending business, launched in association with IDFC First Bank in 2020, had a loan portfolio of Rs 2,000 crore as of August this year. Its ratio of non-performing assets, as a percentage of the loan portfolio, was then less than 1%.
  • Earlier this year, Cred launched Cred Mint, its P2P lending platform in partnership with non-bank P2P Liquiloans. Those who invest in the product earn interest of around 9%, while the loans will be disbursed at 12% -13%.

“About 25-30% of all credit card bill payments in India are made through the platform,” Shah told ET in an interview in August. “The business is doing well and we have over 2,000 brands. Our payments industry, which is young, is also growing by 60% month on month. ”

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The startup has more than 1,300 brands, including Samsung, Myntra and Curefit, as members. It has onboarded around 3 million customers in the past two years, according to data shared by the company.

FinTech on fire

At $ 4.6 billion, India’s fintech industry nearly quadrupled its fundraising in the first nine months of 2021 compared to the period a year earlier, a PwC report revealed on Monday. Fifty-three transactions were recorded in the third quarter alone. Companies operating in the fintech branches – insurtech, richtech, neobank, etc. – aroused the interest of investors.

Read also:
M2P Fintech’s valuation could double in a few weeks

Six fintech unicorns have been hit so far this year – Digit Insurance, Five Star Finance, Cred, Groww, Zeta, and BharatPe. At least four others – Paytm, MobiKwik, Policybazaar and Pine Labs – are looking to tap public markets in the near future.


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