Sampat says 1.7 crore creditworthy Indians trust CRED
CRED will raise Rs.8,550 crore (USD900 million) in its Series H round led by Meta, saying the fund raising is structured through a combination of primary and secondary share purchases for acceleration of growth plan. CRED will raise this round at a post-money valuation of Rs.43,239 crore (USD4.5 billion) and a pre-money valuation of Rs.38,819 crore (USD4.03 billion).
Under the terms of the investment, Meta will join the CRED cap table as a minority investor and will not receive access to CRED customer information.
CRED has built a platform that catalyses financial progress for creditworthy Indians, with products across payments, lending, insurance, wealth, and lifestyle that 1.7 crore (17 million) members engage with every month. It processes over 40% of credit card bill payments in India, commanding significant volume in a category it created 8 years ago. CRED’s lending business has grown to Rs.24,000 crore (USD2.5 billion) in managed AUM for the top financial institutions in India, a reflection of its member quality.
The Series H will fuel its plans to accelerate growth, build institutional muscle, and extend its leadership across categories. Founder Kunal Shah will step away from his operating role as CEO while retaining his personal shareholding in CRED. Kunal will transition to the global leadership team at Meta. Miten Sampat, who has driven strategy and finance for CRED since 2020, will take over as interim CEO with immediate effect. The board and leaders are in the process of constituting the right leadership structure towards eventual IPO.
Kunal Shah, founder, CRED, said on 22 June, “I started CRED in 2018 with a belief that creditworthiness deserves to be rewarded. In under eight years, that belief has turned into a new category: millions of members, Rs.3,200 crore (USD325 million) in revenue, profitability, a full stack of licences and a strong brand. On this foundation, with additional capital and an extraordinarily talented team, CRED is poised to become an enduring institution for decades to come. I’m stepping back with gratitude and with conviction that the team will keep raising the bar.”
Miten Sampat, interim CEO, CRED, elaborated, “1.7 crore creditworthy Indians trust CRED with improving their relationship with money. Behind this is a high-talent-density team that has consistently demonstrated ownership, mission orientation, and taste. We have a generational opportunity to build on Kunal’s vision and compound consistently towards becoming a public company. I’m excited to take CRED forward in its next chapter. We are just getting started.”
Shailendra Singh, MD, PeakXV Partners, added, “CRED has had a highly inspiring startup journey since we led the seed round in 2018 and a lot of the credit for its unusual success goes to Kunal – whom we’ve partnered for over a decade – and the core leadership team at CRED. The company has created a category, amassed millions of highly engaged users, and built a sound economic engine. We are excited about the next phase of CRED as it strengthens the product, platform, and distribution moats it has built, and believe it will go from strength to strength in the years ahead.”
CRED is India’s most rewarding fintech platform, trusted by 1.7 crore affluent Indians. With a mission to enable financial progress, CRED enables members to manage credit cards and other payments, track and improve credit scores, and monitor financial activity across accounts. CRED rewards members for every payment with curated access to shopping, travel, and premium experiences. Access is reserved for individuals with high credit scores, making CRED the platform of choice for India’s most affluent and creditworthy consumers. Fiinews.com
