Credit card repayment platform, Cred on Tuesday said that it has closed a fresh $215-million funding round led by new investor Falcon Edge Capital and existing backer Coatue Management.
Cred said that it will also offer its team another ESOP buyback opportunity, with a cumulative value of $5 million.
Credit card repayment platform, Cred on Tuesday said that it has closed a fresh $215-million funding round led by new investor Falcon Edge Capital and existing backer Coatue Management. With this investment that values the company at $2.2 billion, the fintech firm helmed by Kunal Shah joins the unicorn club. Cred’s post-money valuation stood at $806 million in January after it secured about $81 million in capital from a clutch of investors.
Existing investors DST Global, RTP Global, Tiger Global, Greenoaks Capital, Dragoneer Investment Group and Sofina also participated in the latest funding that is part of the company’s series D financing round. New investor Insight Partners got added to the firm’s cap table. In all, investors have infused over $400 million into the company.
“…we’ve grown rapidly over the past 2.5 years, with 35% of premium credit card holders and processing 22% of all credit card payments in India on a monthly basis. As the credit card category continues to grow rapidly in India, our opportunity is to imagine new use-cases, empower Cred members to use credit responsibly, and reward them for good financial behaviour,” founder Kunal Shah said in an internal mail to employees. FE has reviewed a copy of the mail.
Cred said that it will also offer its team another ESOP buyback opportunity, with a cumulative value of $5 million. “While most of you were keen on retaining your stock options during the series C, we are committed to a culture of creating wealth for stakeholders and are therefore offering another ESOP buyback opportunity to you,” Shah said in the mail.
The Bengaluru-based company’s losses shot up to Rs 360.31 crore in the year ended March 31, 2020, from losses of Rs 60.86 crore posted in FY19. Revenue from operations stood at a mere Rs 52 lakh in FY20.
Launched in 2018, Cred claims to have over 5.9 million members. A members’ only credit card bill payment platform, the firm rewards its members for clearing their credit card bills on time.
Cred is the second Indian start-up to have turned a unicorn this week. Facebook-backed social commerce start-up Meesho entered the unicorn club after investors led by SoftBank infused $300 million into the company.