Bengaluru-based fintech startup Cred that helps credit card holders manage and pay their bills has raised USD 80 million in its Series C round from existing investors DST Global, Ribbit Capital, Sequoia Capital, and Tiger Global.
This funding round gives the company a post-money valuation of USD 800 million, a Techcrunch report said citing a source. The company has raised a total of USD 975.5 million till now.
Cred was started in 2018 by serial entrepreneur Kunal Shah, who sold his former fintech startup Freecharge to e-commerce company Snapdeal in 2015 for USD 400 million. Shah’s new venture allows credit card holders to trace their expenses, find out banks’ hidden charges, and sends reminders to users to pay card bill on time.
Once a user pays their credit card bill through Cred, the company rewards them with points that can be redeemed during their purchase on its e-commerce platform Cred Store. It has partnered with over 1,300 brands such as Curefit, Myntra, Urban Company, OnePlus, among others that offer premium products for sale on Cred. It charges a fee to these partner companies promising an increase in user engagement.
The recently concluded cricket season Indian Premiere League, during which the company launched its first video advertisement, helped it gain a large chunk of new users. Over the last two years, the company has amassed three million customers.
Local media Economic Times, citing a source, said, “Investors have seen good traction and hence they are leading this round as well. It owns the consumer experience and has been able to curate a differentiated digital experience that merchants and financial institutions value.”
The source said more than one-third of its customers access the platform at least three times a month.