Bengaluru-based fintech eyes strategic expansion amid valuation reset
New Funding Round at a Lower Valuation
Bengaluru-based fintech unicorn CRED is set to raise $75 million in a new internal funding round led by existing investors. This includes GIC (Singapore’s sovereign wealth fund), Sofina Ventures, and RTP Global, according to sources familiar with the matter. Founder Kunal Shah is also reportedly contributing approximately $20 million of his personal capital to the round.
The round will bring the company’s valuation to $3.5 billion, marking a notable 45% decrease from its previous valuation of $6.4 billion in 2022. The company had last raised $140 million in its Series F round, which was also led by GIC.
Strategic Use of Funds: Credit, Cars & More
The proceeds from the current round will be used to scale CRED’s core credit card payments platform, while also expanding into adjacent verticals. Among the new initiatives is the CRED Garage, which enables users to sell pre-owned cars directly through the app. This has been made possible through partnerships with leading used car platforms CARS24 and Spinny.
These collaborations offer services like instant vehicle valuations, doorstep inspection, and fast settlement, providing a seamless end-to-end experience for car sellers.
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Pioneering Digital Currency Integration
In January 2025, the company became one of India’s first fintechs to integrate with the Reserve Bank of India’s (RBI) central bank digital currency (CBDC). CRED launched a beta version of its e₹ (e-Rupee) wallet in collaboration with Yes Bank, allowing select users to transact using the digital rupee within the app.
The feature supports UPI-linked payments, offering users a digital cash-like experience backed by the RBI. It aims to drive awareness and adoption of India’s CBDC in a controlled and secure environment.
Robust Financial Performance in FY24
CRED reported strong financials for the fiscal year 2023–24:
- Revenue surged by 66% to reach ₹2,473 crore, compared to ₹1,484 crore in FY23.
- Operating loss narrowed by 41% to ₹609 crore, down from ₹1,024 crore in the previous year.
- Total losses (including non-operating) stood at ₹1,644 crore, up 22% YoY.
CRED referred this growth to increased product adoption, monetizing users, and very high cost efficiencies. Marketing costs were cut by 36% while customer acquisition cost reductions were 40%. Which implies a shift towards organic growth.
CRED’s Vision: A Broader Fintech Ecosystem
Despite the decline in valuation the company is still committed to diversified financial ecosystem. Being in new verticals like digital currency and automotive commerce lets it position itself, not only as a credit card payment platform, but as a multi-service lifestyle and financial platform.
the company has been in life when users used have experience in a digital marketplace and through digital ecosystems, and there are new entrants in India’s fintech space gaining users in credit related products, if we can get focus on user engagement, innovation and cost discipline, the company can hopefully continue to be one of the few successful players in this space.
Conclusion
CRED’s latest funding round, which highlighted a valuation markdown, highlights a high degree of investor commitment and confidence. And with that high level of commitment and confidence, the company is well established to grow its revenue, improve operational discipline and pursue product diversification in order to strengthen CRED’s unique positioning in India’s dynamic digital economy.
CRED is also expected to explore financial services such as personal lending, insurance distribution, and wealth management in the near future. With India’s digital economy projected to reach $1 trillion by 2030, the company sees immense potential in catering to a growing base of financially savvy users. By combining data-driven insights with user-centric product design, the company aims to build trust in a market where transparency and reliability are often missing. This vision aligns with India’s push toward a more inclusive and technology-driven financial infrastructure.
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