Posted on March 15, 2023
CRED: The startup that made paying bills fun!
Credit cards have become increasingly popular in India as more people seek out this versatile and convenient payment option.
Did you know the number of active credit card users in India stands at nearly 77 million as of 2022?
As a result of the wide range of perks, cash-back opportunities, and cost-cutting measures offered by credit cards, many people sign up for multiple cards. Multiple cards equal multiple bills to pay.
Cashing on this need, CRED was created as a credit card bill payments platform that not only helped its users stay on top of their payments for multiple credit cards but also earn rewards for making on-time payments.
A stalwart in the fintech space
The smashing success of CRED can be attributed to its founder, Kunal shah, a well-known figure in the start-up world. After the promising growth of his first firm, FreeCharge, which was later acquired by Snapdeal, Kunal launched CRED in 2018.
With the launch of CRED, Kunal Shah aimed to offer more advantages and opportunities to those with strong credit scores. He tried to create a spiral effect that would lead to an increase in the number of people with good credit scores.
A massive hit:
The company had a strong start, raising $15 million in seed funding from Sequoia India and other investors in a mere 6 weeks. As a post-pandemic impact, CRED has seen significant growth, including raising $90 million in Series A and B funding rounds. In April 2021, after completing its series D funding, the company became a unicorn.
Currently, the start-up is among the most well-funded fintech companies in India and has a valuation of over $6 billion. The company has amassed over 5 million users and is expected to exceed the numbers in the coming years.
CRED’s unicorn journey
The company was founded with the goal of increasing credit accessibility and affordability for individuals in India. To accomplish this, they developed a technology platform that allows them to provide loans at interest rates lower than those offered by traditional lenders. Additionally, the company offers a range of financial products to assist customers in managing their finances effectively.
CRED operates as a membership platform that grants users access to exclusive benefits and rewards from brands such as Ola, Zomato, Cleartrip, and more. Users pay a monthly subscription fee to join, and in return, they receive special deals and offers from the company’s partnered brands. The company makes money by taking a commission from the transactions made through CRED.
The company’s business model centers around its app, with revenue generated from businesses offering deals through the app, users paying credit card bills, and the new peer-to-peer lending feature, CRED Mint.
If you’re an entrepreneur looking to start a fintech business, don’t miss out on the benefits Tether Community has to offer. With our resources and experts, we can help turn your start-up idea into a successful reality. Join Tether Community today and take the first step towards building the fintech business of your dreams.