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CRED raises $72 Mn from Lathe, Kunal Shah’s QED and others

EntrackrEntrackr · 1m ago
CRED raises $72 Mn from Lathe, Kunal Shah’s QED and others
Medial

CRED raises $72 Mn from Lathe, Kunal Shah’s QED and others As per Entrackr’s estimates, CRED will be valued at $3.64 billion post money, a nearly 43% haircut from its $6.4 billion valuation in the Series F round, where it raised $140 million in June 2022. Fintech unicorn CRED has received Rs 617 crore ($72 million) from multiple investors, including Lathe Investment, RTP Global, Sofina Ventures, and QED Innovation Labs, the family office of founder Kunal Shah. According to regulatory filings with the Registrar of Companies (RoC), GIC’s Lathe Investment pumped in Rs 354.4 crore ($41 million) while RTP Global and Sofina have invested Rs 74.87 crore ($8.75 million) and Rs 25.8 crore ($3 million), respectively. Kunal Shah’s family office QED Innovation Labs has infused Rs 162 crore ($19 million). As per sources, CRED will raise a total of $75 million in this round. Following the allotment of this round, GIC through Lathe Investment will hold a 5.95% stake in the firm while RTP Capital and Sofina Ventures will command 1.14% and 1.97% stakes respectively. CRED offers a range of services, including credit card management, credit score tracking, hidden charge detection, bill payment reminders, and cashback. It also provides access to shopping, travel packages, and tools for managing vehicle insurance, FASTag, and related features. While CRED is targeting full-year profitability in FY26, it reported a 22% increase in its net loss to Rs 1,644 crore in FY24. This figure includes expenses related to the employee stock ownership plan (ESOP) and taxes. During the same period, the company’s revenue surged 66% year-on-year to Rs 2,473 crore. It has yet to file its FY25 annual report.

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Exclusive: CRED set to raise $75 Mn at $3.5 Bn valuation led by GIC

EntrackrEntrackr · 1m ago
Exclusive: CRED set to raise $75 Mn at $3.5 Bn valuation led by GIC
Medial

CRED set to raise $75 Mn at $3.5 Bn valuation led by GIC After a three-year pause, fintech unicorn CRED is back in the fundraising game with a $75 million investment from its existing investors, three sources familiar with the matter told Entrackr. “Existing investor GIC, through Lathe Investment, is leading the round, with participation from RTP Global and Sofina,” said one of the sources requesting anonymity. The source added that CRED founder Kunal Shah will invest around $20 million in the internal round. “The deal terms have been finalized, and the investment is expected to be announced shortly.” CRED raised $140 million in June 2022 in a mix of primary and secondary rounds led by GIC at a valuation of $6.4 billion. Following the deal, CRED's valuation is set to drop to $3.5 billion, a 45% cut from its previous valuation, according to sources cited above. CRED has raised a total of $1 billion in funding across nine rounds. According to startup data intelligence platform TheKredible, PeakXV is the largest external stakeholder with 10.4% followed by Ribbit Capital, Tiger Global, and others. Founder and CEO Shah commands a direct 22.8% stake, along with his QED Innovation Labs. The fundraise comes as CRED works to narrow its losses. A source indicated that the company turned profitable in the first two months of FY26 and is now targeting full-year profitability for the ongoing fiscal. CRED declined to comment on the story, while queries sent to GIC, Sofina and RTP Global did not elicit a response. CRED provides services such as credit card management, credit score tracking, hidden charge detection, bill payment reminders, and cashback. It also offers access to shopping, travel packages, and tools for managing vehicle insurance, FASTag, and other related features. It also used to offer P2P lending but recently discontinued it after RBI’s guidelines. During FY24, CRED reported a 22% increase in its net loss to Rs 1,644 crore. This figure includes expenses related to the employee stock ownership plan (ESOP) and taxes. Meanwhile, the company’s revenue surged 66% year-on-year to Rs 2,473 crore during the same period.

Kunal Shah’s CRED and Newtap to lead Rs 550 Cr investment in NBFC arm

EntrackrEntrackr · 5m ago
Kunal Shah’s CRED and Newtap to lead Rs 550 Cr investment in NBFC arm
Medial

Non-banking financial company Newtap Finance Private Limited is planning to raise Rs 550 crore (around $64 million) from Newtap Technologies and CRED in the near to medium term. CRED founder Kunal Shah’s Newtap Technologies is the majority shareholder in Newtap Finance (formerly Parfait). According to a press release by India Ratings and Research, during FY22-24, promoters have invested Rs 149 crore in Newtap Finance, with CRED contributing a primary infusion of Rs 35.7 crore to date. Newtap Finance (NFPL) offers personal loans to individuals, with CRED serving as the loan service provider. CRED has a monthly active user base of 12 million and provides a range of services, including credit card payments, UPI transactions, vehicle management, lending, insurance, personal finance management via account aggregator rails, and rewards/deals. Newtap Finance’s loan book lacks seasoning, but CRED pre-approves loans for select users based on their financial behavior. All CRED members qualify with high credit scores, which is a key eligibility criterion for the app. Kunal Shah indirectly owns 76% of Newtap Finance through his fully owned entity, Newtap Technologies, while CRED holds a 23.6% stake. Shah and CRED gained control of Newtap in 2022, but the RBI blocked CRED's bid to raise its stake in 2023. Since then, Newtap has worked to establish itself as an independent NBFC. At the end of December 2024, the total AUM outstanding on Newtap Finance’s platform was Rs 1,141.6 crore, of which Rs 632 crore was on NFPL’s books. NFPL has also partnered with two large lenders—a bank and an NBFC—for co-lending and plans to scale up co-lending in the near term. As of December 2024, CRED had an AUM (assets under management) of Rs 19,000 crore, with an NPA (non-performing asset) of 1.1%, the press release added. During the fiscal year that ended in March 2024, CRED reported a 66% year-on-year growth in its operating revenue to Rs 2,473 crore. Moreover, the operating losses for the Tiger Global-backed company reduced by 41% in the same period.

SydeLabs raises $2.5 Mn led by RTP Global

EntrackrEntrackr · 1y ago
SydeLabs raises $2.5 Mn led by RTP Global
Medial

AI security and risk management startup SydeLabs has raised $2.5 million in its seed round led by RTP Global. The round also saw participation from Picus Capital and marquee angel investors such as Kunal Shah and Sai Srinivas Kiran. The startup will use the funds for research and development (R&D) and to build on its existing product portfolio. Founded by Ruchir Patwa and Ankita Kumari, SydeLabs offers solutions to identify security and safety vulnerabilities in enterprise AI systems and prevent them in real time, helping mitigate cybersecurity attacks and abuse. SydeLabs is look to do partnerships with large language model (LLM) operation providers to distribute its product. It is also working on tools to help enterprises achieving compliance for their AI applications across geographies. The firm plans to clock $1 million in annual recurring revenue (ARR) by the end of 2024. Early-stage venture capital firm RTP Global claims to have made over 110 investments worldwide. Its notable investments include Datadog, DeliveryHero, CRED and SumUp.

CRED nears Rs 2,500 Cr revenue in FY24; cuts operating losses by 41%

EntrackrEntrackr · 9m ago
CRED nears Rs 2,500 Cr revenue in FY24; cuts operating losses by 41%
Medial

Reward-based payments platform CRED continues its growing financial journey on the results side for the fiscal year ending March 2024. The fintech unicorn reported 66% growth in its scale during the last fiscal year, while also managing to reduce operating losses by 41%, bringing them close to Rs 600 crore. According to the company’s press release, CRED’s total revenue spiked by 66% year-on-year to Rs 2,473 crore in FY24. Notably, the Kunal Shah-led firm’s scale surged 5.8X over the past two fiscal years, with revenue rising from Rs 422 crore in FY22. Members used CRED for a wide range of payments beyond credit card bills, with strong adoption of P2P UPI payments, as per the release. The expanded adoption of CRED Pay across online merchants, boosted transaction volumes by 254% during the year. As a result, the total payment value (TPV) surged by 55% to Rs 6.87 lakh crore, while monthly transacting users (MTU) increased by 34%. In FY24, CRED’s customer acquisition costs dropped by 40%, while its marketing expenses declined by 36% during the same period. The launch of the CRED garage also gained traction for the company with over 4.2 million vehicles parked on in FY24 for challan and pollution certificate checks, FASTag recharges, and insurance renewals. CRED saw a 58% increase in monetized members, with contribution margins growing over 20X. The company claims to have been consistently contribution margin-positive for nine consecutive quarters. In the last fiscal year, its operating losses shrank by 41%, dropping to Rs 609 crore in FY24 from Rs 1,024 crore in FY23. Caveat: CRED’s net losses might exceed its operating losses, a detail that will become clearer when it files its numbers with the RoC. For instance, it reported a net loss of Rs 1,347 crore in FY23, while its press release referred to Rs 1,024 crore as the operating loss in the same period. “Meaningful growth comes from a sharp focus on high-quality users and creating exceptional experiences for them. This commitment to putting members first and rewarding trustworthy behaviour has driven growth, engagement, and trust across our ecosystem—benefiting members, merchants, and financial institutions alike.”, Kunal Shah, founder, CRED added in the press release. CRED has raised a total of $1 billion (Rs 7,775.20 crore) in funding across nine rounds. According to startup data intelligence platform TheKredible, PeakXV is the largest external stakeholder with 10.4% followed by Ribbit Capital, Tiger Global, and others. Founder and CEO Shah commands a direct 22.8% stake, along with his QED Innovation Labs. While a 66% topline growth is nothing to sniff at, one suspects CRED expected to, or is expected to, do better. The RBI move to regulate P2P lending in the last two months will only make this very significant revenue stream tougher to grow for the fintech, even as the lag between revenues and product and feature launches remains an issue of concern. It would be safe to say that CRED’s Shopping or travel segments are not significant contributors yet, although with a sizable captive user base now, the drop in promotion costs can be expected to continue. Customer acquisition costs are also taking a bit of a pause as the firm figures out the next cohort of users without compromising on its original premise of going for the cream of the crop, in terms of credit scores. Like many others, the limited or lack of revenue making opportunities on UPI payments remains an achilles heel, despite a very strong performance there. CRED remains one of the few firms which enjoy the credibility to be able to launch services that integrate multiple databases and information sources well, like CRED Garage. However, after loans, the firm badly needs a secondary revenue stream that is as promising to keep its users interested. Who knows, depending on its experience with auto insurance, perhaps a health insurance policy with CRED level features is around the corner? And we aren’t talking CRED coins here.

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