CRED Secures $72 Million in New Funding

CRED, a prominent fintech unicorn, has successfully garnered Rs 617 crore ($72 million) from various investors. These include Lathe Investment, RTP Global, Sofina Ventures, and QED Innovation Labs, which is associated with the family office of founder Kunal Shah.

Investment Details

As revealed in filings with the Registrar of Companies (RoC), GIC’s Lathe Investment contributed Rs 354.4 crore ($41 million). Meanwhile, RTP Global and Sofina Ventures invested Rs 74.87 crore ($8.75 million) and Rs 25.8 crore ($3 million) respectively. Kunal Shah’s family office, QED Innovation Labs, injected Rs 162 crore ($19 million).

Startup Superb first reported these investment details last month. Sources indicate that CRED aims to raise a total of $75 million in this funding round.

Valuation Insights

According to estimates from Startup Superb, CRED is projected to have a valuation of $3.64 billion post-money. This represents a significant decrease of nearly 43% from its previous valuation of $6.4 billion during the Series F round, where it raised $140 million in June 2022.

Stake Distribution

Following this funding round, GIC, through Lathe Investment, will own a 5.95% stake in CRED, while RTP Global and Sofina Ventures will hold 1.14% and 1.97% stakes respectively.

CRED’s Service Offerings

CRED provides a diverse range of services including credit card management, credit score monitoring, hidden charge identification, bill payment reminders, and cashback offers. It also offers services related to shopping, travel packages, and managing vehicle insurance, including FASTag features.

Financial Performance

Although CRED is aiming for full-year profitability by FY26, the company reported a 22% rise in its net loss, which reached Rs 1,644 crore in FY24. This loss accounts for expenses related to the employee stock ownership plan (ESOP) as well as taxes. In contrast, the company’s revenue saw a substantial increase of 66% year-on-year, amounting to Rs 2,473 crore. The FY25 annual report has yet to be filed.