CRED raises $81 mn investment; buys back $1.2 mn in employee shares

admin / January 6, 2021 / India, NewCrop, Startups

Bengaluru-based financial services startup, CRED, raises new investment round, bringing up the company’s total valuation to $806 million. 

The startup provides users with a digital platform that they can use to pay credit card bills and payments while earning rewards. The startup now also allows users to pay rent via its service and has launched Cred Pay, a service that allows customers to pay shopowners for purchases.

The new Series C investment round is worth $81 million and will be put toward further growth plans for the startup. 

“We had a very clear strategy to delay monetisation and focus on user growth,” Kunal Shah, Founder of Cred, said as reported by Times of India. “We believe we are a perfect platform for merchants, and banking and financial services players to cross sell their products.  

The new investment round was led by DST Global and saw participation from Sequoia Capital, Ribbit Capital, Tiger Global and General Catalyst. 

Since Shah founded the startup in 2018, Cred has raised total funding worth $256.5 million and has grown its membership base to around 6 million. It has also grown the number of shopkeepers using Cred Pay to 1400, so far. 

 In addition to the funds raised, the company has also bought back shares from past and current employees, worth approximately $1.2 million, as part of its Employee Share Buyback Program. 

“We hope to maintain this in the subsequent rounds of funding,” Shah said, as reported by TOI. “The idea is to create a serious wealth creation opportunity for the team.”

As part of its reward program for credit cards and other payments, Cred offers rewards from companies including Samsung, Puma, cure.fit and Myntra, among others

(Picture courtesy: Cred)

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