CRED to raise Rs 8,550 crore in funding round led by Meta
New Delhi, June 22
Fintech platform CRED on Monday announced that it will raise Rs 8,550 crore in its Series H funding round led by Meta, as the company looks to accelerate growth and strengthen its position across financial services categories.
According to the company, the investment will be structured through a combination of primary and secondary share purchases.
Following the transaction, CRED will be valued at a post-money valuation of Rs 43,239 crore (around USD 4.5 billion), while its pre-money valuation stands at Rs 38,819 crore (around USD 4.03 billion).
The company said Meta will join CRED's cap table as a minority investor. It also clarified that Meta will not receive access to any customer information as part of the investment.
CRED said the fresh capital will be used to accelerate growth plans, build institutional capabilities and extend its leadership across various business categories.
Over the years, CRED has expanded beyond its original credit card bill payment offering and now operates across payments, lending, insurance, wealth and lifestyle segments.
According to the company, around 1.7 crore members engage with its products every month. CRED said it currently processes more than 40 per cent of credit card bill payments in India, commanding significant volume in a category it created eight years ago.
The company also highlighted the growth of its lending business, which has expanded to Rs 24,000 crore (around USD 2.5 billion) in managed assets under management (AUM) for some of India's leading financial institutions.
As part of the leadership transition accompanying the funding round, Founder Kunal Shah will step away from his operating role as Chief Executive Officer while retaining his personal shareholding in the company. Shah will transition to Meta's global leadership team.
The company said Miten Sampat, who has led strategy and finance at CRED since 2020, will take over as interim CEO with immediate effect. It added that the board and leadership team are working towards creating the appropriate leadership structure as the company progresses towards an eventual initial public offering.
— ANI
Reader Comments
Interesting that Meta is investing. Probably want access to India's fintech boom. At least they clarified no customer data sharing - that's important for privacy. Kunal Shah stepping down as CEO is surprising though. Hope Miten Sampat can handle the transition well.
40% of credit card payments in India? That's huge. But honestly, their rewards have become less attractive over time. Used to be a big fan but now I barely use the app. Hope this funding brings back some real value for members like me. 😕
As someone who works in fintech, this is a massive validation for the Indian market. CRED's model of targeting premium customers is smart. The 1.7 crore active members with Rs 24,000 crore AUM is impressive. Keen to see how they use this capital before the IPO.
Kunal Shah joining Meta's global leadership team - that's a big move! He built CRED from scratch and now stepping away. I'm a bit skeptical about the leadership change though. Interim CEOs rarely work out well for startups heading to IPO. Let's see.
CRED has genuinely changed how I manage my credit cards. The UX is top class compared to traditional bank apps. But Rs 8,550 crore is a lot of money - hope they use it wisely and don't burn it on unnecessary marketing. Focus on profitability please! 🙏
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.