CRED Startup Story
Credit is a concept that has been around for a long time. People have been using credit since the beginning of time. When our cash reserves are depleted, credit is essential, and credit cards have made it simple to obtain. Paying credit card debts, on the other hand, is a priority that is as tough to handle. This is why Cred came up with the novel idea of creating a platform that will assist Indians in paying their credit card bills on time while also providing them with fast offers and benefits.
Cred is a Bengaluru-based Fintech platform that allows customers to make credit card payments through its app while also receiving special offers and other advantages online. Cred has also launched house rent payment options, short-term credit lines, and Cred Mint, which allows lenders to lend their idle money to borrowers with good credit ratings at interest rates of roughly 9% per year. If you’d like to learn more about Cred, its startup story, founders and team, tagline, logo, business and revenue model, funding, investors, growth, competitors, and other topics, please contact us.
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About CRED
CRED is a startup established in Bangalore. Consumers who utilize the platform to pay their credit card bills are eligible for rewards. The organization takes great care in safeguarding the data and information of its customers. As a result, the app is entirely secure.
CRED Startup Story
The objective was straightforward. It aimed to build a foundation on which life could be made more orderly and systematic. The entrepreneur aimed to give those with good credit scores extra privileges and rewards. As a result, it was critical to creating a flywheel effect for more people in order to enhance the results. From businesses to the government, everyone has been focused on the people. The company’s founder intended to focus on the people, on responsible residents who pay their taxes on time. He believed that no one had ever solved their problems before. As a result, Cred was created primarily to ease the difficulties of taxpayers while also rewarding them with enticing rewards.
CRED Founder and Team
CRED was founded by Kunal Shah, who also serves as its CEO. He is an Indian businessman who is credited with starting new businesses for the second time. Kunal graduated from Wilson College with a bachelor’s degree in philosophy and went on to study an MBA at the Narsee Monjee Institute of Management Studies, but he left out halfway through the program to follow his goals of being an entrepreneur. Along with Sandeep Tandon, Kunal began his business path with PaisaBack, a website that provides customers with cashback, coupons, and other deals. However, he finally closed it down in order to start FreeCharge, which he and his partner founded in 2010.
FreeCharge was acquired by Snapdeal in April 2015, however, Shah continued to lead the company as an independent organization. He quit the firm the next year and went on to start Cred in 2018, which became a unicorn on April 6, 2021. Axis Bank, on the other hand, bought FreeCharge in July 2017. Kunal Shah was born in the city of Mumbai in the year 1983. Chess and poker are two of his favorite pastimes. Chips and guacamole are two of his favorite foods. He admires Socrates’ philosophy and G.B. Shaw’s plays.
CRED Revenue Model
Cred makes money in two ways: one is through advertising and the other is through sponsorships.
Cred, as we all know, lists a wide range of products and deals that assist its users from a variety of companies. Cred charges these firms a fee for their exposure. Cred earns money every time a user takes advantage of the offers.
Cred collects financial data from consumers who use the platform to pay their bills and other transactions. Cred has other banks and financial institutions that pay them a charge for accessing this data, in addition to providing Cred with the chance to propose more offers to their subscribers utilizing these data. These businesses, banks, and financial institutions would eventually approach potential clients with their own line of products that were tailored to their preferences.
CRED Business Model
The company’s business model is divided into four sections:
The CRED App :
The Cred app is a nice-looking, well-designed app that users can visit if they want to look at the offers accessible after paying their credit card bills. They may effortlessly sign up for the app and view all of the deals available to them.
Businesses That Provide Deals on the App :
CRED users can access a variety of offers from a variety of businesses. CRED accomplishes this by bringing businesses on board and collaborating with them. It is a win-win situation for CRED and its clients, who can take advantage of the businesses’ exclusive deals. It is also a win-win situation for businesses. This is because they, too, profit greatly from the increased visibility.
Users who pay their Credit Card Bills :
CRED is also a convenient and beneficial platform for those who pay their credit card bills using it. End-users can use CRED as an app to pay their credit card bills and receive several offers and benefits, as opposed to banking or other apps. Users who enjoy the app, on the other hand, share CRED with their family and friends.
CRED Mint :
On August 20, 2021, Cred announced a new feature called Cred Mint, which is a peer-to-peer lending network that allows Cred users to lend their spare cash to creditworthy members. It’s a rather open procedure that only allows Cred members with a minimum credit score of 750 or higher to become borrowers. Furthermore, the lenders can take their money at any time using the interest that has accrued during the period.
CRED Growth :
Cred has been steadily increasing over the years. Being a startup launched in 2018, it reached the unicorn club on April 6, 2021, when it closed its $215 million Series D investment. In a statement issued in April 2021, Kunal Shah stated that CRED controls “22 percent of all credit card payments in India on a monthly basis.
Cred launched Cred Mint on August 20, 2021, which will function as a peer-to-peer lending option available to CRED customers. Cred Mint was created in conjunction with Liquiloans, an RBI-approved P2P Non-Banking Financial Company (NBFC). Cred members can now lend money to other Cred members who are trustworthy, based on established interest rates. Cred Mint can be used to lend money to another creditworthy person, allowing them to earn roughly 9% of each credit. Cred Mind, on the other hand, will only be available to people who have good credit scores.
CRED Competitors :
Paytm, PhonePe, and MobiKwik are the company’s main competitors.
CRED’s main competitor is Paytm. It was launched in 2010 and is a fintech app and payments platform based in Noida, Uttar Pradesh, India.
CRED has a number of competitors, including PhonePe. It’s also a 2015-founded digital payment and financial services platform situated in Bangalore, India. This app has the largest market share of 46.04 percent as of July 2021.
MobiKwik is another finance startup that provides digital payment choices while also competing with CRED. Its headquarters are in Gurugram, Haryana, India, and it was founded in 2009.
