India’s fintech startup CRED secures new funding valuation of $6.4 billion
Indian fintech startup CRED is raising $140 million in a new financing round, its fourth funding in the past year and a half, as it courts millions of high credit score customers and broadens its offerings.
Series F Financing Round Led by GIC, Singapore’s Sovereign Wealth Fund
GIC, Singapore’s sovereign wealth fund, is leading CRED’s Series F financing round, which includes secondary transactions. Existing backers Tiger Global, Sofina Ventures, Alpha Wave Ventures, and Dragoneer also participated in the funding, valuing CRED at $6.4 billion.
Significant Valuation Growth
This valuation marks a significant increase from CRED’s previous valuations of $2.2 billion in April last year and $4 billion in October. The investment comes at a time when CRED is finalizing the acquisition of Smallcase, an Amazon-backed startup that operates a platform to help new generations of investors participate in the Indian equity markets.
Acquisition of Smallcase to Supercharge Offerings
The acquisition of Smallcase will allow CRED to supercharge its offerings to customers. The startup, founded by fintech veteran Kunal Shah, helps and incentivizes individuals (by offering rewards such as cash back) to improve their credit score by encouraging them to pay their credit card bills on time.
CRED’s Expanded Offerings
In the past one and a half years, CRED has significantly expanded its offerings. The startup today provides its customers with discounts to high-end hotels and gives them access to scores of premium direct-to-consumer brands. Last year, it also launched Mint, a peer-to-peer lending service that enables customers to lend to other individuals on the platform at an ‘inflation-beating’ rate.
Indian Startup Ecosystem Navigates Challenging Market Conditions
The funding comes at a time when the Indian startup ecosystem, like those elsewhere, navigates a sharp reversal in pricing and frequency of funding rounds. Venture capital firms have hit brakes on writing new checks as they grow cautious about the dwindling market conditions globally.
Key Takeaways
- CRED raises $140 million in new financing round
- Valuation grows to $6.4 billion, a significant increase from previous valuations
- Acquisition of Smallcase will supercharge offerings for customers
- CRED’s expanded offerings include discounts, premium direct-to-consumer brands, and peer-to-peer lending service
About CRED
CRED is an Indian fintech startup founded by Kunal Shah. The startup helps and incentivizes individuals (by offering rewards such as cash back) to improve their credit score by encouraging them to pay their credit card bills on time.
About GIC, Singapore’s Sovereign Wealth Fund
GIC is a sovereign wealth fund that invests in various assets globally. It has invested in several Indian startups and has a significant presence in the country’s startup ecosystem.
About Tiger Global, Sofina Ventures, Alpha Wave Ventures, and Dragoneer
Tiger Global, Sofina Ventures, Alpha Wave Ventures, and Dragoneer are all prominent venture capital firms that have invested in CRED’s previous funding rounds.
