Another Unicorn in the Club! CRED crosses $2.2 Billion valuation in Series D Round

Fintech startup, CRED has turned into a unicorn following the closure of its Series D funding at $215 million. With the fundraising, the start has a post-money valuation of $2.2 billion. This time, the fintech startup has closed to tripled its valuation. The Series D round was led by a new investor and Falcon Edge Capital and Insight Partners. Further, existing investors DST Global, RTP Global, Tiger Global, Greenoaks Capital, Dragoneer Investment Group, Coatue Management and Sofina also participated in the round.

Following this funding round, CRED will use this capital for ESOP buybacks with a cumulative value of $5 million. In the Series C funding round in January 2020, the startup had announced a similar programme worth $1.2 million.

Just four months into 2021, India already has six new unicorns. Cred is the second Indian start-up to have turned a unicorn this week. Social commerce startup Meesho entered the unicorn club after investors led by SoftBank infused $300 million into the company. Before this, insurtech startup Digit Insurance, SaaS startup InnovAccer, B2B commerce company Infra.Market and NBFC Five Star Business Finance turned into unicorns.

About CRED

CRED operates an app that rewards customers for paying their credit card bills on time. It gives them access to credit and a premium catalogue of products from high-end brands.

On the latest development, CRED Founder Kunal Shah said, “With the credit card category in India expanding rapidly, we have a massive opportunity to shape responsible behaviour, imagine new use cases, and create a rewarding platform for members. Our growth in the past year has demonstrated the potential value of the high-trust, low-friction platform the CRED team has been building…”

“…we’ve grown rapidly over the past 2.5 years, with 35% of premium credit card holders and processing 22% of all credit card payments in India on a monthly basis. As the credit card category continues to grow rapidly in India, our opportunity is to imagine new use-cases, empower Cred members to use credit responsibly, and reward them for good financial behaviour,” founder Kunal Shah said in an internal mail to employees, reports suggest.