The fast-growing Credit card payments company CRED has concluded a $251 million financing round and has boosted its value to $4 billion within six months, amid an unprecedented new wave of funding for startups according to media sources.
A representative of the fintech company founded by Kunal Shah confirmed the sale but declined to provide further details.
The Series E round was led by current investor Tiger Global Management and Falcon Edge Capital joined by two new investors – hedge fund Marshall Wace and Steadfast Capital.
Other existing investors DST Global, Insight Partners, Coatue Management, Sofina, and RTP Global invested also reportedly participated in the round.
Launched in 2018, CRED is a card-based payment platform that rewards customers with points to pay their bills. However, it has since added additional services like rent payments and personal loans in its quest to become a fully-fledged financial service provider.
The company is owned by the serial entrepreneur Kunal Shah. The sparing valuation of CRED in the past 12 months clearly indicates that Shah, who’s one of India’s most popular new-age entrepreneurs, is leaving no stone unturned to monetize the platform to lure more investors as well as customers. The company recently announced Mint Peer-to-Peer Loan, a product that allows CRED users to lend money at an interest rate of 9 percent to others.
Monetization is the most important aspect for CRED as it allows users to get rid of hidden charges on their credit card statements and performs similar functions but is not able to earn profits from them.
In the past 12 months, CRED has raised more than $500 million in funding from investors. In April, the fintech unicorn raised $215 million from investors in the Series D round, with an estimated valuation of $2.2 billion.
The growth of CRED is really significant and considering the huge number of Credit Card users and increasing usage of digital transactions, investors believe that the next wave of growth in the Indian startup ecosystem would be ed by fintech startups like CRED.
CRED has so far raised $471.2 million in 7 funding rounds from 29 investors. After the recent round of $251 million, the investment amount in CRED is totaled $722.2 million.