Kunal Shah’s CRED valued at $4 billion following new $251 million funding

cred valued 4bn following 251mn funding

Indian fintech CRED raises $251 million in its latest round of funding and is valued at $4 billion.

CRED, the fintech app founded by Kunal Shah, raises $251 million in Series E round of funding. This round of funding was its third funding this year, and the start-up is now valued at $4.01 billion.

Tiger Global Management and Falcon Edge Capital co-led the Bangalore-based fintech start-up’s Series E round of funding. Hedge funds Marshall Wace and Steadfast Venture Capital invested in this round of funding along with existing investors DST Global, Coatue, Sofina, Insight Partners, RTP, and Dragoneer. The new fundraising round nearly doubled the Indian fintech start-up’s valuation from $2.2 billion in April when it raised $215 million.

CRED, a fintech app, launched in 2018 as a credit-card payment platform rewarding its users with points for paying their credit-card bills through the app. It has since expanded to credit lending through CRED ‘Cash’ and has enabled online commerce and brand discovery through its ‘Store’ and ‘Commerce’ platforms.

On its app, CRED offers its members access to a variety of premium brands. Unlike most others in India, CRED doesn’t focus on the regular audience of India — the millions of users of the world’s second-most populated nation. The start-up instead caters to some of the most premium audiences. CRED and a few other start-ups only are focusing on this high-end base. These apps have taken a platform-based approach to acquire customers for now and then look for monetization. As credit cards in India remain an aspirational product, the under penetration would likely ensure continued strong growth in coming years.