InvestorQ : Why has Cred got such a huge valuation when it is still making losses?
ishika Banerjee made post

Why has Cred got such a huge valuation when it is still making losses?

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1 week ago
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You can say that but that is how most tech start-ups are being valued these days. You must be aware that Cred became the latest Fintech Unicorn with an indicative valuation of $2.2 billion. A Unicorn has a valuation of $1 billion. It recently raised $215 million in Series-D funding from Falcon Edge Capital and Coatue Management at these lofty valuations.

Till date, Cred which tries to inculcate responsible credit usage, has raised $440 million and is also implementing a $5 million ESOP to incentivize employees. Though its revenues are still small, rapid growth is expected more than 5.5 crore credit cards in use. Cred reported net loss of Rs.360 crore in FY20, almost 5-fold up over FY-19.

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