Cred Business Model & full Case study 2021

Cred Business Model
Founder & Founding YearKunal Shah in 2018
Current Valuation$2.2B
HeadquarterBangalore, Karnataka India
Total Funding Raised & Rounds$471.2M in 6 rounds
Cred Business Model

Cred Business Model is one of the latest Indian unicorn and fascinating business case studies in the Indian startup ecosystem. This is a fintech startup founded by Kunal shah. In just 2 years, cred went from 0 to hit a $2.2 Billion valuation and became one of the youngest Indian startups to reach this milestone. The Peculiarity of cred is that in 2020 alone, it incurred a massive loss of 360 crores which is massively increased from 2019 by 492%. And for every rupee of revenue generated, they spend 727 rupees which is a massive cash burn. That makes a massive expenditure in creative marketing. Cred helps users to pay credit card bills & Wins Amazing rewards, and check credit scores. The startup has raised a total of $471.2M. Their latest funding was raised on 6 April 2021.

Dragon investment group and Tiger global management was a most recent investor. Cred is a great business idea.

founder of cred – Kunal Shah

founder of cred - Kunal Shah

Cred was founded by Kunal Shah, who interestingly is a philosophy from Mumbai‘s Wilson college and does not have any engineering background. Kunal Shah has interested in reading business books. Kunal shah founded their first venture in 2010 called Freeharge, and Snapdeal later acquired it in 2015. He is also an active angel investor and mentor.

What Cred App do – Business model and case study

Cred credit score
  • Cred App helps user to earn reward points every time they pay their credit card bill
  • Cred app Tracks all your credit card dues and sends you timely payment reminders to help users pay their bills on time.
  • The app also inform about unexpected fees or charges that have been charged on user credit card.
  • However, not everyone is eligible to use the cred app. The cred app only used that user who has a credit score of more  than 750
  • The Cred app provides rewards in the form of cred coins which can be redeemed in the form of cash/reward from brands you love. Ex –
  • Today cred has more than 30 lakh users, and cred is already processing 20% of all the premium credit card transactions.

Cred – Business model and case study

Cred business moddel
  • To access CRED programs, a credit score of quite 750 must be obtained. This application also allows users to share certain data like Mastercard numbers, access to emails to trace users’ expenses and amounts, credit scores, and how they invest their money. You collect CRED coins, so you’ll use them for the prizes while you start paying the bills.
  • To form these deals available, CRED must include companies and make connections with them. The exposure they achieve within the CRED application helps young and older companies when customers are from diverse backgrounds.
  • People already need this type of payment platform application to pay their credit card bills from the bank. CRED allows them more advantages to hold out an equivalent Mastercard payments operation across the app. When more people cash in CRED, they share CRED with more friends and relatives.

Cred- Revenue Model / How cred earn profit

Cred posted operating revenue of only Rs 50 lakh by spending 378.4 crores during the fiscal year ended in March 2018. cred spent Rs 726.7 to earn an Rs1 of Profit. At present Cred, makes no big money, and it is mainly focusing on increasing its consumer base by extensive marketing and providing surprising rewards to the users. How Cred’s business model earns money is as follows.

  •  Listing products – Cred makes money by charging a listing fee for products and offers that businesses wish to display to the app users.
  • Data collection – The potential data collected from the app seems to be a viable monetization opportunity in the future for lending base services.
  • Financial data – Cred has users’ financial data like how timely users made payment of the bill, their expenditure data, their credit scores data, and many other financial data.
  • Loan – Cred provide loan to their use through your credit card without any other formality, and it charges the transaction fees.
  • Rent pay –  cred provides a platform where the user pays their rent through their credit card, crediting some transaction fees on every transaction.
  • By selling data – they will sell the data to third parties and use the data to optimize and personalize the product to the user.

What’s the Problems cred business model solves & what benefits they provide to the users

Cred benefits they Provide to the users

When Cred started in 2018, they identified 3 major problem of credit card holder, Which are

  • Hidden charges –  Cred shows all the hidden charges that banks regulate on the user’s credit cards. And help in saving their money from all hidden charges.
  • Late fees  –  users no longer remember paying their credit card bill; they no longer have to remember when exactly their due dates, so Cred reminded the user to pay the credit card fees on time.
  • Extra interest cred help in from paying extra interest through Pay automatic credit bill on time with the help of their user Email address.

So, Cred provides these incentives in order to get the customer to use their product, eventually, to increase their user base customers.

Finance & funding of cred – business model

Cred has raised a total of 471.2M in funding over 6 rounds. Their latest funding was on 6 April 2021 From the series D round. Total 28 investors funded to the cred. The most recent investors are Tiger global management and dragonet, an investment group. It is the biggest startup of the year.

Seed Funding – Cred
Announcement date6 Nov. 2018
Transaction nameSeed round – Cred
No. of Investors3
Money Raised$30M
On Valuation
Lead InvestorSequoia capital India
Cred Series Funding Round – A
Announcement date16 April 2019
Transaction nameSeries – A
No. of Investors11
Money Raised$125M
On Valuation$550M
Lead Investor
Cred Series Funding Round – B
Announcement date26 July 2019
Transaction nameSeries – B
No. of Investors10
Money Raised$120M
On Valuation$450M
Lead InvestorGenini investments, Rebbit Capital, Sequoia capital India
Cred Series Funding Round – C
Announcement date20 Nov. 2020
Transaction nameSeries – c
No. of Investors8
Money Raised$81M
On Valuation$725M
Lead InvestorDST Global
Cred Series Funding Round – D
Announcement date6 April 2021
Transaction nameSeries – D
No. of Investors9
Money Raised$215M
On Valuation$2.2B
Lead InvestorCoatue, Falcon edge capital

Marketing/ Promotion Cred- Business model

Cred sponsorship
  • BCCi reported as Indian fintech startup cred as a official partner in Rs 120 cores for upcoming 3 years.
  • Similarly, cred makes a huge investment in their  T.V Ads, with most of the Bollywood celebrities like Anil Kapoor as an official partner in IPL. Currently, Actor Jim Sarbh plays a big role in the promotion of cred.
  • Cred provides surprising rewards and gift vouchers to their users for making a user base. Like they give free flight tickets, iPhone, I-Watch, and many more surprising rewards.
  • Today Cred has 30 Lack user base through their extensive marketing, and cred is already processing 20% of all the premium credit card transactions. Cred today has 30 Lack user base through their extensive marketing.

Frequent Asked Questions

What is Cred?

Cred is an Indian fintech startup that helps users pay credit card bills & Wins Surprising rewards and check credit scores.

Who is the Founder of Cred?

Kunal Shah has Founded the Cred in 2018. it is a fintech startup. Cred Business Model

Who can use an app?

However, not everyone is eligible to use the cred app. The cred app only used that user who has a credit score of more than 750.

when cred was started?

Cred was started in 2018 by Kunal shah

Is cred an Indian Company?

Yes, Cred is a Bangalore Based Fintech company/Startup Founded by Kunal shah

Cred founder net worth?

Cred’s founder Kunal shah net worth is $806 after cred funding Series D round

Cred office address?

Cred is a Bangalore based startup founded by Kunal shah in 2018

Kunal shah startups?

Before starting cred in 2018 Kunal shah firstly start freecharge in 2010 that is acquired by snapdeal in 2015.

Why do investors invest in cred?

As We all know that Investor wants a good rate of return so, the Investor has seen the Potential growth of cred in upcoming years. And investor also sees their Preceding year growth from 2018 to 2021.

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