CRED Raises $72 Mn In A Down Round From RTP, Others

Fintech unicorn Cred has raised Rs 617 crore (about $72 million) in a down round led by Singapore sovereign wealth fund GIC’s Lathe Investment. 

According to its filings with the Registrar of Companies (RoC), GIC led the funding round by investing INR 354.4 Cr. RTP Capital and Sofina invested INR 74.9 Cr and INR 25.9 Cr, respectively. The founder and CEO Shah’s investment firm, QED Innovation Labs, also put in INR 162.1 Cr.

After this funding round, GIC (through Lathe Investment) will own a 5.95% stake in the company, while RTP Capital and Sofina Ventures will hold 1.14% and 1.97% stakes, respectively.

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The fundraise comes just a few months after reports emerged that the fintech giant was in talks to raise $100–$200 million from investors like Peak XV Partners, Tiger Global, and Ribbit Capital, at a post-money valuation of $4 billion.

Since its last funding round, the startup has been actively launching new products and pushing for higher revenue, even as losses continued to grow. In FY24, CRED’s operating revenue jumped 71% to Rs 2,397 Cr from Rs 1,400 Cr in FY23. However, its losses also increased by 22% year-on-year to Rs 1,644 Cr.

Over the last two to three years, the members-only credit card bill payment platform has expanded beyond its main service, entering new areas like wealth management and vehicle services. 

This shift includes launching CRED Garage and CRED Money, as well as acquiring the wealth management platform Kuvera. Launched in September 2023, CRED Garage helps users manage car ownership by offering a single dashboard to track documents, recharge FASTag, monitor fuel costs, and more. 

The Bengaluru-based company has also teamed up with CARS24 to allow users to sell used cars through its app.

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