Financial tech start-up, CRED which has become a well-known staple in the finance sector in the country announced that they have successfully bagged an investment amounting to a massive $ 140 million USD in their latest round of funding. This is a round that saw the participation of investors that have already taken part as well new investors.
The start-up company has also given out over 42,000 Compulsorily Convertible Preference Shares which set investors back by Rs. 145,846 for every individual share so that they can raise a funding of $ 80 million USD, according to official reports by the company.
Many investors and fund management companies took part in funding the start-up including Lathe Investments, Tiger Global and many more.
With this fresh batch of funds, the company is now valued at $ 6.4 billion USD which is a massive $ 2.39 billion USD jumped as they had a valuation of $ 4.01 billion USD prior to this colossal funding. The start-up company became a unicorn in September of 2021 and in the span of 10 months, they have multiplied that number by 6 which is a great achievement considering the lack of funds entering the start-up field in the country, and the tech industry of India especially.
Since the start of 2021, CRED has raised funds amounting to $ 687 million USD which many experts have expressed concerns, but as of now, the company is growing regularly and is going strong in the finance tech sector.
CRED is an Indian based fintech start-up company. The app or platform facilitates credit card payments and incentivises people to use their platform by giving away various types of rewards. People can make all types of payments using the app including payment of rent, insurance and credit payments as well.
the company then diversified their services recently and just like other fintech companies started offering short term credit free loans and they called it ‘Buy Now Pay Later’. In 2021, they even entered the peer 2 peer loaning field.
The company was founded by Mr. Kunal Shah 4 years ago back in 2018, and its head office is naturally situated in Bangalore.
The company still has not released their financial statements for the fiscal year that ended in 2022 although it is assumed that they had another year where they ran massive losses. In 2021, the company ran losses that amounted to Rs. 560 crores.
