Source:Inc42
Bengaluru: Fintech unicorn CRED is planning to raise $75 million in new investment after three years from its last investment round. “Existing investor GIC, through Lathe Investment, is leading the round, with participation from RTP Global and Sofina,” said one of the sources requesting anonymity also mention that the Founder Kunal Shah will also invest approximately $20 million of his own money as part of this internal funding round “The deal terms have been finalized, and the investment is expected to be announced shortly.”
Valuation Declines to $3.5 Billion
This new financing will mark a further reduction in CRED’s valuation to $3.5 billion (down from $6.4 billion in 2022 when it last spent $140 million). A reduction of 45%, CRED’s current valuation reflects the prevailing uncertainty in the startup investment environment.
CRED has raised $1 billion total over 9 rounds. According to data from TheKredible, the largest external stake is held by Peak XV Partners at 10.4%, followed by Ribbit Capital and Tiger Global. Kunal Shah owns a direct and indirect interest of 22.8%, through QED Innovation Labs.
On the Way to Profitability
Despite its reduced valuation, the company seems to be progressing favorably in terms of its financial situation. Sources indicate that CRED moved into profit in the first two months of FY26, and it targets profitability for the entire year in this fiscal.
In FY24, CRED’s revenue was up 66% year-on-year to ₹2,473 crore, while net losses substantially increased by 22% to ₹1,644 crore. Again, losses comprise employee stock plan costs and taxes.
Expanded Services
CRED started with credit card bill payments but now offers a wider range of services. These include:
- Credit score checks
- Bill payment reminders
- Cashback rewards
- Vehicle insurance and FASTag management
- Access to shopping and travel deals
The company had also offered peer-to-peer lending, but stopped the service after the Reserve Bank of India (RBI) introduced new rules.
The company also provided peer-to-peer lending services, but ceased it after the Reserve Bank of India (RBI) released new guidelines.
A part of something larger
CRED’s down round is part of something larger in the startup ecosystem in India. Lots of later stage companies have had to raise capital, or equity funding, despite flat, or lower valuations. Similar funding situations are being faced by other companies including Spinny, Euler Motors, Udaan, Pratilipi, and The Good Glamm Group. CRED didn’t respond, and GIC, Sofina, or RTP Global didn’t respond prior to publishing.
