CRED Secures $75 Million Investment to Boost Financial Growth

CRED, the fintech unicorn, is making a strong return to the fundraising scene after a three-year hiatus, successfully attracting $75 million in investments from its current investors, according to three sources familiar with the developments shared with Startup Superb.

GIC, an existing investor, is spearheading the fundraising through Lathe Investment, with additional support from RTP Global and Sofina, as reported by an anonymous source. Furthermore, Kunal Shah, the founder of CRED, is set to contribute approximately $20 million to this round. The terms of the agreement have been finalised, and an announcement regarding the investment is expected soon.

Previously, CRED raised $140 million in June 2022 through a combination of primary and secondary rounds led by GIC, which valued the company at $6.4 billion.

After this recent funding round, CRED’s valuation is anticipated to fall to $3.5 billion, reflecting a 45% decrease from its last valuation, according to the aforementioned sources.

To date, CRED has successfully raised a total of $1 billion across nine funding rounds. As per data from various startup intelligence platforms, PeakXV stands out as the largest external stakeholder at 10.4%, with Ribbit Capital, Tiger Global, and others following closely. Kunal Shah holds a direct 22.8% stake in the venture, alongside QED Innovation Labs.

This latest fundraising effort coincides with CRED’s ongoing mission to reduce its losses. A source indicated that the company achieved profitability in the first two months of FY26, aiming for overall profitability for the current fiscal year.

CRED has refrained from commenting on these developments, and inquiries directed to GIC, Sofina, and RTP Global have gone unanswered.

Services Offered by CRED

CRED delivers a variety of services including credit card management, credit score monitoring, detection of hidden charges, bill payment reminders, and cashback offerings. Additionally, it provides access to shopping, travel packages, and management tools for vehicle insurance, FASTag, and other related features. Although CRED previously offered P2P lending, this service was recently discontinued following RBI’s guidelines.

Financial Performance in FY24

In FY24, CRED registered a 22% increase in its net loss, amounting to Rs 1,644 crore. This figure incorporates expenses associated with the employee stock ownership plan (ESOP) and taxes. Conversely, the company’s revenue saw a significant rise of 66% year-on-year, reaching Rs 2,473 crore during the same period.

In the broader landscape, many growth and late-stage startups are navigating a challenging funding environment, often raising capital at flat or diminished valuations. For instance, Spinny recently acquired $131 million at the same valuation, while Euler Motors and Udaan followed suit. Additionally, Pratilipi concluded a down round, and Stanza Living, CityMall, and The Good Glamm Group are reportedly in discussions for funding at lower valuations.