CRED's valuation falls to $3.5 billion after raising $72 million in funding

Bengaluru-based fintech major Cred has reportedly closed a new funding round worth 617 crore (about $72 million), marking a sharp 45% drop in valuation from its 2022 peak, ET reported. 

Previously, the Kunal Shah-led unicorn was valued at $6.4 billion and has now been marked down to $3.5 billion in the latest financing round.

Singapore’s sovereign wealth fund GIC led the investment through its Lathe Investment arm, infusing Rs 354 crore. Other investors include RTP Global, which invested Rs 74 crore, Sofina Ventures with Rs 25.8 crore, and QED Innovation Labs—the family office of Cred founder Kunal Shah—which put in Rs 162 crore. The round was made entirely through primary capital.

Cred’s existing investors include marquee names such as Tiger Global, DST Global, and Peak XV Partners. GIC had also led the company’s previous $140 million fundraise in 2022, which included both primary and secondary transactions.

While the valuation reset appears steep, the timing coincides with tangible improvements in Cred’s financials. The company posted a 66% year-on-year revenue growth to Rs 2,473 crore in FY24. Operating losses narrowed to Rs 609 crore, compared to Rs 1,024 crore in the previous year, even though overall net losses, including ESOP expenses and taxes, rose 22% to Rs 1,644 crore.

Cred has also been broadening its platform beyond credit card bill payments. It now offers unsecured personal loans, secured lending against mutual funds, and vehicle-related services through Cred Garage, which currently manages more than 11 million vehicles. The company’s lending partners have reportedly built a loan book of Rs 15,000 crore using Cred’s infrastructure.

The diversification strategy is part of a broader push to transition from a niche credit engagement platform into a holistic financial services player. Cred has added features like credit score monitoring, detection of hidden fees, shopping rewards, and FASTag management.