• surajit bhowmick

CRED Business Model, Investment, Revenue - All You Need to Know

Have you ever heard about CRED? If No, then this for you, Basically CRED rewards you when you pay your credit card bills. You can redeem these rewards from its partners. The startup has over 1,300 brands as members, including Samsung, Myntra, and Curefit among others. CRED also sends you a reminder to pay your bills on time.

Let's have a deep look into the CRED. But before let me known in the comment section how many of you used a credit card.

CRED Business Model, Investment, Revenue - All You Need to Know


In 2018 CRED was founded by Kunal Shah (founder of Free Recharge). In 2015 Snapdeal acquired Free Recharge for an estimated ₹ 2,400 crore. Basically, Cred is the second venture of Kunal Shah.

To enjoy the benefits of CRED SERVICES. One has to have a credit score of 750+ to become a member of CRED. Also, you need to verify your details with RBI. For now, this is the only requirement you need to satisfy to become a member.

One more exciting thing is that in Financial Year 2019, CRED expenses were ₹ 64 crores with Zero operating Revenue. The Revenue which is generated from Primary Business is known as Operating Revenue.

Then also, investors are investing in this FinTech. Investors see a long term profit in this business model.

Company Investors:

CRED is one of those companies that have raised funds before the product launch. CRED has 24 investors total funding amount to $ 256.5 Million. It took two years for Kunal Shah to push the valuation of a CRED to $800 million. Valuation simply Means "How much the Business is worth for"

And Funding is "How much is Invested into it".

Let's have a look at series of investments.

Sequoia Capital India, DST Global, Ribbit Capital, Rainmatter Technology, Gemini Investments are the top 5 investors in CRED.

CRED also has strong competitors include DigiByte, Orangepay, Copenhagen FinTech, and Verifi.

CRED Financial Statement:

Cred has recorded zero revenue from its operations with an overall burn of Rs 64 crore in FY19. The only respite was the Rs 3.03 crore it generated in interest on deposits.

Let's, have a look into the expense breakdown of the CRED for the FY19

CRED Business Model, Investment, Revenue - All You Need to Know

For FY19 CRED, had a Net Loss of ₹ 60.86 crores.

It has been only two years for the company so let's look at the future possibility.

Future Possibility:

Currently, the company is focusing on building a good customer Database. In the future CRED, may charge membership fees to their members. CRED may also charge their partners for promotion in the future.

CRED can read your financial statement. From financial statements there can collect data relating to monthly spending on the cards, Repayment profile, credit score, spending patterns.

The information so collected could be of significant value to Banks, Financial Institutions, Fintech companies, or others who could use such information to offer products or services which, based on your financial profile and spend history, you are more “likely” to be interested in. In the future, there may monetize this data for their revenue. You can read CRED Privacy Policy here.

In the Future CRED, may launch their own credit card to generate an exact source of revenue. There are several possibilities for CRED in the Future.

In my opinion, CRED's future is bright as investors are also investing in this FinTech even though it is a loss-making company for FY2018-19.

Share your opinion in the comment section.

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