Get All Access for $5/mo

Kunal Shah-led Cred Becomes Unicorn After Raising $215 Mn The company will also be initiating an ESOP buyback of $5 million for employees

By Debarghya Sil

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

CRED
Kunal Shah, founder of CRED

Serial entrepreneur and angel investor Kunal Shah led Cred on Tuesday entered the coveted Unicorn club after raising $215 million as a part of its Series D round. This is the second Indian startup in this week to have entered the prestigious club, the first being Meesho.

The funding was led by a new investor Falcon Edge Capital, along with existing Coatue Management LLP. Apart from them existing investors DST Global, RTP Global, Tiger Global, Greenoaks Capital, Dragoneer Investment Group, and Sofina have also participated in this round. With the latest capital infusion, Cred's valuation has pegged at $2.1 billion from $800 million in January this year when it raised $81 million in Series C, led by DST Global. Its other investors include Sequoia Capital, Tiger Global.

Shah further confirmed that the company will also be initiating an ESOP buyback of $5 million for employees.

Commenting on the development, Shah said, "With the credit card category in India expanding rapidly, we have a massive opportunity to shape responsible behaviour, imagine new use cases, and create a rewarding platform for members. Our growth in the past year has demonstrated the potential value of the high-trust, low-friction platform the CRED team has been building, and we are delighted to share the value created with investors, team members, as well as partners and the CRED community."

Started in 2018, Shah who earlier had founded Freecharge, an online payment platform, founded Cred, an app that rewards customers who pay their bills on time. The app also provides a range of premium product catalogue from high-end brands. The startup claims to levy no hidden charge while making credit card payment. Cred promotes the building of a community of users who have good credit scores.

Currently the startup has nearly 6 million users.

Debarghya Sil

Entrepreneur Staff

Former Correspondent

News and Trends

Battery Smart Raises USD 65 Mn in Series B to Boost EV Battery Swapping Network

Orios Venture Partners achieves a 29x return with a strategic partial exit from Delhi-based EV startup, enhancing early-stage investment success.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Money & Finance

Avoid These 10 Mistakes Entrepreneurs Make with Money

Despite the challenging statistic that only 5% of startups survive beyond five years, common financial pitfalls often contribute to their failure. Through personal observation, I've identified the prevalent financial mistakes made by entrepreneurs.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Thought Leaders

4 Steps You Need to Follow to Make It Through Any Crisis With Your Company Intact

The steps we take before a crisis define our team's future resilience in the face of one. Here's what you need to do to prepare for a crisis of any kind at any time.

Leadership

How His Personal Battle With Cancer Inspired This Founder's Solution for Patient Care

On this episode of "The Founder CEO," Michael O'Neil, founder and CEO of GetWellNetwork, discusses his inspiring journey as a leader and the transformative role of AI in healthcare.