Why has the Fintech company, CRED, raised a large round of funding from the market?

You must have seen ads of CRED on television quite often these days with most of the top stars of Hindi cinema briefly modelling for the company. It is actually a credit points distributing Fintech, which actually rewards people for prompt payment on credit cards. Now, the Fintech start-up, has raised $81 million funding.

This funding has bene raised from investors like DST Global, Sequoia Capital, Ribbit Capital, Tiger Global, Sofina and Coatue. While some of these investors are already existing investors in CRED, some have entered into the company for the first time. Based on the latest round of funding CRED is valued at $806 million, a tad short of unicorn valuations.

Till date, CRED has already managed to raise $228 million in four rounds of funding. It plans to expand its product and service portfolio with the funds raised. CRED rewards credit card users for making timely bill payments by offering a plethora of benefits. CRED currently boasts of 5.9 million registered users on its platform, almost doubled since March 2020.