Fintech startup, Cred, in talks to raise $200 mn and reach unicorn status

Bengaluru-based financial services startup, Cred, may be set to raise a new investment round worth $200 million.

Cred provides a digital fintech platform allowing customers to use their service to pay credit card bills, among others, and receive rewards points in return. The startup also provides an online store known as Cred Store, where users can redeem rewards points. 

Cred has around six million customers and partnerships with banks for credit card payments. The company has brand partnerships for rewards with companies including Puma, Curefit, Samsung, Myntra and dineout, among others. 

If closed, the new investment round would bring the company’s value up to $2 billion, making it India’s newest unicorn startup. Cred was founded in 2018 by Kunal Shah. 

“The value is also in owning the consumer experience…both merchants and financial institutions value this,” a source said, as reported by Economic Times. “Moreover, a third of Cred members access the platform more than three times a month.”

The investment is in the later stages of talks and would see participation from Alpha Wave Incubation Fund, DST Global, Ribbit Capital, Tiger Global and Sequoia Capital. 

Banks the startup is partnered with include American Express, Standard Chartered, Citibank, HSBC, HDFC, ICICI, SBI, AXIS, Kotak, RBL and PNB, among others. 

(Picture courtesy: Techportal)

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