InvestorQ : Why has CRED raised $100 million and what does it propose to do?
Mitali Bhutta made post

Why has CRED raised $100 million and what does it propose to do?

3 years ago

CRED was launched by serial start-up creator, Kunal Shah, who had also launched Freecharge earlier to cater to the online payment ecosystem. CRED may now be in the midst of plans to raise close to $100 million at a valuation of $700 million to $800 million overall.

More than 50% of the fund infusion is likely to come from the existing investors in CRED including marquee names like Sequoia Capital, Tiger Global Management and Hill-house Capital. CRED also expects some new investors like Falcon Edge Capital and Sofina of Belgium.

CRED has been quite actively advertising in the last few weeks. It is a mobile application wherein customers can make their credit card payments on the CRED platform and get CRED points in exchange that can be used for various discounts and offers on the platform.

As of now, CRED has already partnered with companies Myntra, Curefit and Samsung to provide offers and discounts on their products. It has been quite aggressive promoting its concept and product during the IPL tournament which is going on in Dubai.

Back in August 2019, when CRED had raised funds to the tune of $450 million, it was valued at $450 million. Prior to that, CRED had also raised around $30 million in 2018. Kunal Shah, the founder of CRED, had earlier sold Freecharge to Snapdeal for $400 million in 2015.