Did you know that Cred’s valuation went from 0 to 2.2 billion dollars in just two years with a 20% share in the market?
Founded by Kunal Shah in 2018, CRED is an Indian fintech that enables users to pay their credit card bills easily for which they can get rewards.
CRED entered the Unicorn Club in April 2021 with a valuation of $2.2 Billion that was accompanied by a funding round led by Falcon Edge Capital and Coatue Management LLP for $215 Million.
Achieving this status in just two years is a sign of CRED’s amazing business model.
Let’s have a look at Cred business model:
CRED identified the problem of hidden charges, interest on credit cards, and hence, they designed an app-based system to pay their credit card bills and rewarding them with enticing CRED Coins. With a smooth system and rewards, users find it easy to use this app, making them habituated to it.
CREDs Pay, RentPay, Stash, Store are some of its extensions that generate revenue.
The company uses its data to give targeted advertising. It also aims to give other financial services in the future. Along with this, it has many other ideas in the pipeline from which CRED can become profitable.