Bengaluru-based fintech startup Cred is in talks to raise ₹875 crores in Series A funding round and be valued at somewhere between ₹3,150 crores and ₹3,500 crores.
Investors like Sequoia Capital, Ribbit Capital, and billionaire Yuri Milner’s Apoletto Asia have already invested ₹455 crores in the startup. Other investors like Hillhouse Capital and Tiger Global Management are also reported to have invested in the funding round.
In April this year, the startup raised ₹700 crores from Hillhouse Capital, Sequoia Capital, Ribbit Capital, Apoletto Asia, and others. Earlier this month, General Catalyst was in the buzz as it was looking to invest in Cred’s upcoming funding rounds.
According to an MCA filing assessed last week, the startup raised a bridge Series B round of ₹27.55 crores from Sequoia Capital India. The startup issues 20,179 Series B CCCPS shares at ₹13,653.31 each. With this investment, Sequoia now has a 12.68% stake in the firm. Prior to this round, the Cred has been issuing Series A and Series A1 CCPS shares at ₹3010.42 each till April 2019. The premium suddenly jumped 354% due to the increased valuation.
Cred’s management said that the funds will be used to fuel its growth, expansion, and marketing.
Launched in 2018 by Freecharge’s founder Kunal Shah, Cred is a member-only app that rewards users for paying credit card bills in a timely manner. Users with good credit scores can use the app to understand and navigate their credit card statements and avoid hidden charges associated with their bills.
Cred has partnered with several firms like Airbnb, Cure. fit, BookMyShow, FreshMenu, Urban Ladder, and ixigo to reward users with experiences and upgrades every month. The startup has partnered with several credit card providers like HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and others.