You are currently viewing CRED raises $80M in Series F round at $6.5B valuation: Report

CRED raises $80M in Series F round at $6.5B valuation: Report

Fintech unicorn CRED has raised $80 million (Rs 617 crore) of fresh capital as part of its Series F funding round from new and existing investors. 

The digital payments platform has approved the issuance of 42,308 Series F Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 145,846.98 per share to raise $80 million, a regulatory filing with the Registrar of Companies (RoC) shows. The filing was assessed by Entrackr.

GIC (via Lathe Investment) has led the round with Rs 467 crore followed by Tiger Global, Sofina Ventures SA, Alpha Wave Ventures, and DF International, which have put in Rs 50.14 crore, Rs 50 crore, Rs 42.63 crore, and Rs 7.51 crore respectively. The company may receive more funds in this round. 

As per the report by Entrackr, the credit card payment app raised the fresh round at a valuation of $6.5 billion—60 percent higher than its previous valuation of $4.01 billion when it raised a Series E financing round of $251 million from existing investors, in October 2021. 

In 2021, the startup raised capital through three rounds—$81 million in its Series C round, $215 million in Series D, and finally, $251 million in Series E. 

In March 2022, The CapTable had reported about this impending deal and CRED’s plans to foray into wealth management. Read the full story here.

Fintech startup CRED raised $80 million in Series F funding round

Founded in 2018 by Kunal Shah, CRED offers rewards and benefits to premium credit card users for paying credit bills. Later, the company expanded its base into lending ecommerce payments and providing short-term loans through Buy Now Pay Later (BNPL) options. Last year, it also forayed into the P2P lending segment. 

The platform forayed into corporate finance management by acquiring Happay, which offers all-in-one expense management software for businesses. 

CRED’s losses had widened by 45 percent year-on-year to Rs 524 crore for FY 2021, from Rs 360 crore a year ago. The company, however, saw a jump of over 400 percent in revenues—from Rs 18.16 crore in FY20 to Rs 95.53 crore in FY21. Total revenue from operations jumped to Rs 88 crore in FY21 from Rs 52 lakh. 

The firm is yet to disclose its financial results for FY22.  

On Thursday, NPCI Bharat BillPay, the wholly-owned subsidiary of National Payments Corporation of India announced that it had onboarded CRED as a key agent institution for providing easy bill payment solutions. With the collaboration, CRED users will be able to make recurring bill payments like electricity, telecom, DTH, gas, education fees, water, and municipal taxes more conveniently.

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