[Funding] CRED raises Series C $81 million from DST and others; buys back ESOPs

CRED, an app that allows users to pay their credit card bills and gives rewards in return; has raised $81 million in its Series C round at a post-money valuation of $806 million. Existing CRED investor Yuri Milner's investment fund DST Global led the round. The round also saw the participation from Sequoia Capital, Ribbit Capital, Tiger Global, and General Catalyst. Besides, other investors, Sofina, Coatue and Satyan Gajwani of Times Internet also invested in this round. As part of the round, Cred has also initiated an Employee Stock Option Plan (ESOP) buyback of Rs 9 crore ($1.2m). Current and former employees can sell upto 50% of their vested shares in CRED.

“As we raise funds to support our next phase of growth, it's important to acknowledge the role that employees have played in our success. We are committed to enabling wealth-creation opportunities for them and thus, have allocated 10% of our capable allocated for ESOPs even at the Series C stage. I am grateful for their conviction, as well as that of our investors, and am focused on creating value for them as the product and business evolves,” said Kunal Shah, Founder, CRED.

About CRED

CRED processes 20% of all credit card bill payments in India. It saw its user base jump to over 5.9 million with a median credit score of 830. Over 35% of premium credit cardholders in India are on CRED. Members are spending twice of the average user in India, the company said. “One in five waitlisted individuals work to bring their credit scores above 750 and become members. Thus, validating Cred’s potential in enhancing financial well-being,” it adds.

It started as an invite-only app. This exclusivity led to its initial success. The app is now open for all those who have credit scores of over 750. In India, a customer's credit score, also known as CIBIL score, is calculated out of 900.