>KH-1 at 05:43, 6 July 2021

2021-07-06T05:43:01Z

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{{Short description|Indian financial services company}}
{{other uses|Cred (disambiguation)}}
<noinclude>{{User:RMCD bot/subject notice|1=Cred|2=Talk:CRED#Requested move 20 May 2021}}
</noinclude>{{Infobox company
| name = CRED
| logo = CRED_(FinTech_company)_logo.png
| founded = 2018
| founder = Kunal Shah
| hq_location = [[Bengaluru, Karnataka]]
| hq_location_country = India
| website = {{URL|https://cred.club/}}
}}

'''CRED''' is an Indian [[Financial technology|fintech]] startup,<ref>{{Cite web|title=Kunal Shah's CRED raises $215 million to be India's latest unicorn with a valuation of $2.2 billion|url=https://www.businessinsider.in/business/startups/news/kunal-shah-cred-raises-215-million-to-be-indias-latest-unicorn-with-a-valuation-of-2-2-billion/articleshow/81933639.cms|access-date=2021-04-10|website=Business Insider}}</ref><ref>{{Cite web|date=2021-04-06|title=Kunal Shah’s Cred turns unicorn in less than three years; valuation slingshots nearly 3X to $2.2 billion|url=https://www.financialexpress.com/industry/sme/kunal-shahs-cred-turns-unicorn-valuation-jumps-nearly-3x-to-2-2b-valuation-with-215-million-funding/2228078/|access-date=2021-04-10|website=The Financial Express|language=en-US}}</ref><ref>{{Cite web|title=Cred valued at $2.2 billion with new round, Kunal Shah says 'conscious call' to not monetise in first 2 years|url=https://www.cnbctv18.com/startup/cred-valued-at-22-billion-with-new-round-kunal-shah-says-conscious-call-to-not-monetise-in-first-2-years-8833041.htm|access-date=2021-04-10|website=cnbctv18.com|language=en-US}}</ref> based out of [[Bengaluru]], [[Karnataka]], which was founded in 2018 by Kunal Shah.<ref>{{Cite web|title=CRED - Crunchbase Company Profile & Funding|url=https://www.crunchbase.com/organization/cred-6ab0|access-date=2021-04-10|website=Crunchbase|language=en}}</ref><ref>{{Cite web|last=Patwa|first=Prasannata|date=2018-11-26|title=Cred to launch product for credit card users|url=https://www.livemint.com/Companies/hMPDTo4UhtvMCsEqa6qLoJ/Cred-to-launch-product-for-credit-card-users.html|access-date=2021-04-11|website=mint|language=en}}</ref><ref>{{Cite news|last=Gooptu|first=Biswarup|last2=Sharma|first2=Samidha|title=Kunal Shah: FreeCharge’s Kunal Shah is back with Fintech firm Cred|work=The Economic Times|url=https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/freecharges-kunal-shah-is-back-with-fintech-firm-cred/articleshow/66804073.cms|access-date=2021-04-11}}</ref> CRED's main feature is allowing users to make credit card payments through its app for which they get rewarded.<ref>{{Cite news|last=Bajaj|first=Karan|title=Cred review: Makes credit card bill payments easier, rewards for timely transaction|work=The Economic Times|url=https://economictimes.indiatimes.com/magazines/panache/cred-review-makes-credit-card-bill-payments-easier-rewards-for-timely-transaction/articleshow/66894555.cms|access-date=2021-04-11}}</ref> Later, CRED added features to allow users to make house rent payments<ref>{{Cite web|title=How to pay house rent online with your credit card using CRED app|url=https://www.timesnownews.com/technology-science/article/how-to-pay-house-rent-online-with-your-credit-card-using-cred-app/604934|access-date=2021-04-11|website=www.timesnownews.com|language=en}}</ref> and introduced short-term credit lines.<ref>{{Cite web|last=Staff|date=2020-04-20|title=Cred Rentpay, Stash services launched in India|url=https://www.bgr.in/news/cred-introduces-new-rentpay-and-stash-services-for-creditworthy-individuals-886780/|access-date=2021-04-11|website=BGR India|language=en-US}}</ref> CRED's business model and valuation has received criticism for being overvalued and lacking a solid monetization plan.<ref>{{Cite web|last=Dalal|first=Mihir|date=2021-02-04|title=Forgive us for asking, but what’s Cred’s business model?|url=https://www.livemint.com/news/india/forgive-us-for-asking-but-what-s-cred-s-business-model-11612452194349.html|access-date=2021-04-10|website=mint|language=en}}</ref><ref>{{Cite web|title=Worth $806 mn, Cred's Rs 52-lakh revenue sparks valuation, business model debate|url=https://www.cnbctv18.com/startup/cred-revenue-valuation-business-model-8244661.htm|access-date=2021-04-10|website=cnbctv18.com|language=en-US}}</ref>

== History ==
CRED was founded in 2018 by Kunal Shah; by 2021, the company had onboarded over 5.9 million users and processed about 20% of all credit card bill payments in India.<ref>{{Cite news|last=Dalal|first=Mihir|date=January 5, 2021|title=Cred raises $81 million, announces Esop buyback worth $1.2 million|url=https://economictimes.indiatimes.com/tech/funding/cred-raises-81-million-announces-esop-buyback-worth-1-2-million/articleshow/80096215.cms|access-date=April 30, 2021|website=The Economic Times}}</ref> As of April 2021, CRED offered five distinct products - CRED RentPay, CRED Cash, CRED Pay, CRED Store and CRED Travel Store.<ref>{{Cite news|last=Khaliq|first=Ariba|date=April 25, 2021|title=Great for the Good: Here’s everything you can do with CRED|url=https://timesofindia.indiatimes.com/spotlight/great-for-the-good-heres-everything-you-can-do-with-cred/articleshow/82209403.cms|access-date=April 30, 2021|website=Times of India}}</ref>

== Funding and financial results==
CRED raised funding from [[DST Global]],<ref>{{Cite web|date=2020-12-02|title=Cred raises $80 million in a funding round led by DST Global, valuation now up at $800 million - Business News, Firstpost|url=https://www.firstpost.com/business/cred-raises-80-million-in-a-funding-round-led-by-dst-global-valuation-now-up-at-800-million-9070611.html|access-date=2021-04-10|website=Firstpost}}</ref> [[Sequoia Capital|Sequoia Capital (India)]],<ref>{{Cite web|date=2021-03-25|title=VC firm Sequoia Capital closes second seed fund at $195 million to back startups in India, Southeast Asia|url=https://www.financialexpress.com/industry/sme/vc-firm-sequoia-capital-closes-second-seed-fund-at-195-million-to-back-startups-in-india-southeast-asia/2220031/|access-date=2021-04-10|website=The Financial Express|language=en-US}}</ref><ref>{{Cite web|title=Cred Turns Unicorn, Raises $215 Million At A Valuation Of $2.2 Billion|url=https://www.moneycontrol.com/news/business/startup/cred-turns-unicorn-raises-215-million-at-a-valuation-of-2-2-billion-6735001.html|access-date=2021-04-10|website=Moneycontrol}}</ref> and [[Tiger Global]],<ref>{{Cite web|date=2019-08-26|title=Kunal Shah’s Cred Raises $120 Mn Series B Funding From Ribbit, Tiger Global And Others|url=https://inc42.com/buzz/kunal-shahs-cred-is-raising-101-mn-series-b-funding/|access-date=2021-04-10|website=Inc42 Media|language=en-US}}</ref> among other investors, through four rounds of private funding so far<ref>{{Cite web|title=India’s CRED in talks to raise $200 million at $2 billion valuation|url=https://social.techcrunch.com/2021/03/15/india-cred-in-talks-to-raise-200-million-at-2-billion-valuation/|access-date=2021-04-10|website=TechCrunch|language=en-US}}</ref> and is currently valued at $2.2 billion (April 2021).<ref>{{Cite news|last=Manikandan|first=Ashwin|title=Cred’s valuation soars to $2.2 billion after fresh funding|work=The Economic Times|url=https://economictimes.indiatimes.com/tech/funding/cred-raises-215-million-to-close-its-series-d-funding-round/articleshow/81930422.cms|access-date=2021-04-11}}</ref> CRED posted losses of Rs. 360.31 crore in the 2020 fiscal year (FY20),<ref>{{Cite web|last=Vardhan|first=Jai|last2=Tyagi|first2=Gaurav|date=2021-02-06|title=Kunal Shah’s CRED spent Rs 727 to earn a rupee in FY20|url=https://entrackr.com/2021/02/kunal-shahs-cred-spent-rs-727-to-earn-a-rupee-in-fy20/|access-date=2021-04-11|website=Entrackr|language=en-US}}</ref> caused primarily due to high expenditure on marketing and advertising.<ref>{{Cite web|title=Big Spender CRED Banks On Rent Payments, Credit Lines For Revenue|url=https://www.bloombergquint.com/bq-blue-exclusive/big-spender-cred-banks-on-rent-payments-credit-lines-for-revenue|access-date=2021-04-11|website=BloombergQuint|language=en}}</ref>

== Marketing and advertising ==
CRED became the official partner (sponsor) for the [[Indian Premier League]] for three years from 2020 to 2022,<ref>{{Cite web|title=BCCI announces CRED as Official Partner for IPL|url=https://www.iplt20.com/news/206459/bcci-announces-cred-as-official-partner-for-ipl|access-date=2021-04-11|website=www.iplt20.com|language=en}}</ref><ref>{{Cite web|last=Tewari|first=Saumya|date=2020-09-02|title=BCCI signs on Cred as official partner for IPL in three-year deal|url=https://www.livemint.com/companies/start-ups/bcci-signs-on-cred-as-official-partner-for-ipl-in-three-year-deal-11599022706417.html|access-date=2021-04-11|website=mint|language=en}}</ref><ref>{{Cite web|date=2020-09-02|title=After Unacademy, Cred Joins IPL 2020 As Official Partner|url=https://inc42.com/buzz/bcci-announces-cred-as-official-partner-of-ipl/|access-date=2021-04-11|website=Inc42 Media|language=en-US}}</ref> in a Rs. 120 crore deal.<ref>{{Cite web|last=World|first=Republic|title=BCCI ropes in Indian financial brand CRED as official IPL partners in ₹120 cr, 3-yr deal?|url=https://www.republicworld.com/sports-news/cricket-news/bcci-ropes-in-indian-financial-brand-cred-as-ipl-2020-official-partner.html|access-date=2021-04-11|website=Republic World|language=en}}</ref> CRED's advertising content and videos, often made in-house and featuring celebrities such as [[Rahul Dravid]], [[Anil Kapoor]],<ref>{{Cite web|last=www.ETBrandEquity.com|title=CRED launches 90s inspired multi-film campaign featuring Anil Kapoor - ET BrandEquity|url=https://brandequity.economictimes.indiatimes.com/news/advertising/cred-launches-90s-inspired-multi-film-campaign-featuring-anil-kapoor/78229225|access-date=2021-04-11|website=ETBrandEquity.com|language=en}}</ref> [[Madhuri Dixit]], [[Govinda Ahuja]] and [[Jackie Shroff]]<ref>{{Cite news|last=Bhatt|first=Shephali|title=Who made Bappi Da sing love ballads for credit cards?|work=The Economic Times|url=https://economictimes.indiatimes.com/internet/who-made-bappi-da-sing-love-ballads-for-credit-cards/articleshow/78400017.cms?from=mdr|access-date=2021-04-11}}</ref> and [[Udit Narayan]], [[Kumar Sanu]], [[Bappi Lahiri]]<ref>{{Cite web|last=Misra|first=Shubhangi|date=2020-11-01|title=With Bappi Lahiri to Govinda, India's ad industry is laughing at itself. Not everyone gets why|url=https://theprint.in/opinion/pov/bappi-lahiri-govinda-cred-ad-industry-laughing-at-themselves-not-everyone-gets-why/534852/|access-date=2021-04-11|website=ThePrint|language=en-US}}</ref> generated large discourse in news and social media<ref>{{Cite web|date=2020-11-07|title=Is self-ridicule the new ad formula?|url=https://www.deccanherald.com/metrolife/metrolife-your-bond-with-bengaluru/is-self-ridicule-the-new-ad-formula-912396.html|access-date=2021-04-11|website=Deccan Herald|language=en}}</ref><ref>{{Cite web|date=2020-10-29|title=Govinda's New CRED Ad: Here's Why the Dancing Superstar Said Yes|url=https://odishatv.in/news/govindas-new-cred-ad-heres-why-the-dancing-superstar-said-yes-488994|access-date=2021-04-11|website=Latest Odisha News, Breaking News Today {{!}} Top Updates on Corona - OTV News|language=en-US}}</ref><ref>{{Cite web|last=www.ETBrandEquity.com|title=Jim Sarbh engages with audience in Cred’s new ad film - ET BrandEquity|url=https://brandequity.economictimes.indiatimes.com/news/advertising/jim-sarbh-engages-with-audience-in-creds-new-ad-film/81988755|access-date=2021-04-11|website=ETBrandEquity.com|language=en}}</ref><ref>{{Cite web|date=2020-10-14|title=CRED in the Indian Premier League (IPL): sixer or hit wicket?|url=https://the-ken.com/story/cred-in-the-ipl-sixer-or-hit-wicket/|access-date=2021-04-11|website=The Ken|language=en-US}}</ref> due to their unique advertising strategy, which has received both praise<ref>{{Cite web|title=CRED… not everyone gets it: A copywriter's take|url=https://www.afaqs.com/news/guest-article/cred-not-everyone-gets-it-a-copywriters-take|access-date=2021-04-11|website=afaqs!}}</ref> and criticism.<ref>{{Cite web|last=www.ETBrandEquity.com|title=Opinion: First you pay them, then you mock them? - ET BrandEquity|url=https://brandequity.economictimes.indiatimes.com/news/advertising/opinion-first-you-pay-them-then-you-mock-them/78526353|access-date=2021-04-11|website=ETBrandEquity.com|language=en}}</ref>

== References ==
{{reflist}}

== External links ==
* {{Official website}}

{{FinTech in India}}

[[Category:Indian companies established in 2018]]
[[Category:Financial services companies established in 2018]]
[[Category:Online financial services companies of India]]
[[Category:Companies based in Bangalore]]
[[Category:2018 establishments in Karnataka]]

CRED - Revision history

>KH-1 at 05:43, 6 July 2021