CRED

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CRED is an Indian fintech startup,[1][2][3] based out of Bengaluru, Karnataka, which was founded in 2018 by Kunal Shah.[4][5][6] CRED's main feature is allowing users to make credit card payments through its app for which they get rewarded.[7] Later, CRED added features to allow users to make house rent payments[8] and introduced short-term credit lines.[9] CRED's business model and valuation has received criticism for being overvalued and lacking a solid monetization plan.[10][11]

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.[12] As of April 2021, CRED offered five distinct products - CRED RentPay, CRED Cash, CRED Pay, CRED Store and CRED Travel Store.[13]

Funding and financial results

CRED raised funding from DST Global,[14] Sequoia Capital (India),[15][16] and Tiger Global,[17] among other investors, through four rounds of private funding so far[18] and is currently valued at $2.2 billion (April 2021).[19] CRED posted losses of Rs. 360.31 crore in the 2020 fiscal year (FY20),[20] caused primarily due to high expenditure on marketing and advertising.[21]

Marketing and advertising

CRED became the official partner (sponsor) for the Indian Premier League for three years from 2020 to 2022,[22][23][24] in a Rs. 120 crore deal.[25] CRED's advertising content and videos, often made in-house and featuring celebrities such as Rahul Dravid, Anil Kapoor,[26] Madhuri Dixit, Govinda Ahuja and Jackie Shroff[27] and Udit Narayan, Kumar Sanu, Bappi Lahiri[28] generated large discourse in news and social media[29][30][31][32] due to their unique advertising strategy, which has received both praise[33] and criticism.[34]

References

  1. ↑ Kunal Shah's CRED raises $215 million to be India's latest unicorn with a valuation of $2.2 billion. Business Insider. Retrieved 2021-04-10.
  2. ↑ Kunal Shah’s Cred turns unicorn in less than three years; valuation slingshots nearly 3X to $2.2 billion. The Financial Express(2021-04-06). Retrieved 2021-04-10.
  3. ↑ Cred valued at $2.2 billion with new round, Kunal Shah says 'conscious call' to not monetise in first 2 years. cnbctv18.com. Retrieved 2021-04-10.
  4. ↑ CRED - Crunchbase Company Profile & Funding. Crunchbase. Retrieved 2021-04-10.
  5. ↑ Cred to launch product for credit card users, Patwa, Prasannata. mint(2018-11-26). Retrieved 2021-04-11.
  6. ↑ Kunal Shah: FreeCharge’s Kunal Shah is back with Fintech firm Cred. The Economic Times. Retrieved 2021-04-11.
  7. ↑ Cred review: Makes credit card bill payments easier, rewards for timely transaction. The Economic Times. Retrieved 2021-04-11.
  8. ↑ How to pay house rent online with your credit card using CRED app. www.timesnownews.com. Retrieved 2021-04-11.
  9. ↑ Cred Rentpay, Stash services launched in India, Staff. BGR India(2020-04-20). Retrieved 2021-04-11.
  10. ↑ Forgive us for asking, but what’s Cred’s business model?, Dalal, Mihir. mint(2021-02-04). Retrieved 2021-04-10.
  11. ↑ Worth $806 mn, Cred's Rs 52-lakh revenue sparks valuation, business model debate. cnbctv18.com. Retrieved 2021-04-10.
  12. ↑ Cred raises $81 million, announces Esop buyback worth $1.2 million. The Economic Times(January 5, 2021). Retrieved April 30, 2021.
  13. ↑ Great for the Good: Here’s everything you can do with CRED. Times of India(April 25, 2021). Retrieved April 30, 2021.
  14. ↑ Cred raises $80 million in a funding round led by DST Global, valuation now up at $800 million - Business News, Firstpost. Firstpost(2020-12-02). Retrieved 2021-04-10.
  15. ↑ VC firm Sequoia Capital closes second seed fund at $195 million to back startups in India, Southeast Asia. The Financial Express(2021-03-25). Retrieved 2021-04-10.
  16. ↑ Cred Turns Unicorn, Raises $215 Million At A Valuation Of $2.2 Billion. Moneycontrol. Retrieved 2021-04-10.
  17. ↑ Kunal Shah’s Cred Raises $120 Mn Series B Funding From Ribbit, Tiger Global And Others. Inc42 Media(2019-08-26). Retrieved 2021-04-10.
  18. ↑ India’s CRED in talks to raise $200 million at $2 billion valuation. TechCrunch. Retrieved 2021-04-10.
  19. ↑ Cred’s valuation soars to $2.2 billion after fresh funding. The Economic Times. Retrieved 2021-04-11.
  20. ↑ Kunal Shah’s CRED spent Rs 727 to earn a rupee in FY20, Vardhan, Jai. Entrackr(2021-02-06). Retrieved 2021-04-11.
  21. ↑ Big Spender CRED Banks On Rent Payments, Credit Lines For Revenue. BloombergQuint. Retrieved 2021-04-11.
  22. ↑ BCCI announces CRED as Official Partner for IPL. www.iplt20.com. Retrieved 2021-04-11.
  23. ↑ BCCI signs on Cred as official partner for IPL in three-year deal, Tewari, Saumya. mint(2020-09-02). Retrieved 2021-04-11.
  24. ↑ After Unacademy, Cred Joins IPL 2020 As Official Partner. Inc42 Media(2020-09-02). Retrieved 2021-04-11.
  25. ↑ BCCI ropes in Indian financial brand CRED as official IPL partners in ₹120 cr, 3-yr deal?, World, Republic. Republic World. Retrieved 2021-04-11.
  26. ↑ CRED launches 90s inspired multi-film campaign featuring Anil Kapoor - ET BrandEquity, www.ETBrandEquity.com. ETBrandEquity.com. Retrieved 2021-04-11.
  27. ↑ Who made Bappi Da sing love ballads for credit cards?. The Economic Times. Retrieved 2021-04-11.
  28. ↑ With Bappi Lahiri to Govinda, India's ad industry is laughing at itself. Not everyone gets why, Misra, Shubhangi. ThePrint(2020-11-01). Retrieved 2021-04-11.
  29. ↑ Is self-ridicule the new ad formula?. Deccan Herald(2020-11-07). Retrieved 2021-04-11.
  30. ↑ Govinda's New CRED Ad: Here's Why the Dancing Superstar Said Yes. Latest Odisha News, Breaking News Today | Top Updates on Corona - OTV News(2020-10-29). Retrieved 2021-04-11.
  31. ↑ Jim Sarbh engages with audience in Cred’s new ad film - ET BrandEquity, www.ETBrandEquity.com. ETBrandEquity.com. Retrieved 2021-04-11.
  32. ↑ CRED in the Indian Premier League (IPL): sixer or hit wicket?. The Ken(2020-10-14). Retrieved 2021-04-11.
  33. ↑ CRED… not everyone gets it: A copywriter's take. afaqs!. Retrieved 2021-04-11.
  34. ↑ Opinion: First you pay them, then you mock them? - ET BrandEquity, www.ETBrandEquity.com. ETBrandEquity.com. Retrieved 2021-04-11.

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