Cred To Raise $75 Million From Existing Investors

Fintech startup Cred is set to close a funding round of $75 million from existing investors Singapore's sovereign wealth fund GIC, Sofina Ventures and RTP Global, according to people aware of the matter.

The funding is being raised at a valuation of $3.5 billion, lower than its previous valuation of $6.5 billion, they told NDTV Profit on the condition of anonymity.

Cred's latest round of fundraise was about two years ago when it raised $140 million at a valuation of $6.4 billion in June 2022.

While the valuation in 2022 was much higher, it was in tandem with the market conditions at the time. The reduction in valuation reflects the broader trend in the ecosystem, with valuations for fintech going down, one of the sources said.

The company's plans to raise fresh funds augurs with its plans to focus on development and adoption of its new product offerings, the source said.

Cred's revenue surged 66% to Rs 2,473 crore in fiscal 2024, on the back of increased product adoption and growth of monetised members. Operating losses narrowed from Rs 1,024 crore to Rs 609 crore for the year.

Number of monetised members grew 58% as the company focuses on improving cross-selling of new products to the customer base. Contribution margins, including all variable costs, grew by 20 times.

In the recent past, Cred has announced multiple new offerings, with one being Svalbard, a suite of credit management tools aimed at helping its members improve credit scores. It also launched personal financial management platform Cred Money, which provides a unified view of balances, transactions and patterns across bank accounts.

Queries sent to Cred regarding the development did not elicit a response.