Fintech startup Cred is in discussions to raise USD 100 million in fresh funding. FreeCharge co-founder Kunal Shah’s second business, Cred that incentivizes credit card payments with reward points is in discussions to raise USD 100 million in its subsequent funding round, with extensive inbound interest for second-time founders who possess a proven track experience, according to sources.
Shah is looking to raise funds at an estimate of USD 300 million, unprecedented for the four-month-old startup, as per sources and as of yet the names of potential investors is, however, yet to be finalized.
Dreamplug Technologies Pvt. Ltd, which runs Cred, had beforehand raised approximately USD 25 million in June. According to officials, there is tremendous in-bound interest to finance in Cred even though the company freshly raised money and is only four months old. But the investors are being withheld for the entire process to finalize.
RPT Global, China’s Morningside Ventures, Sequoia Capital, and the personnel office of Russian billionaire DST Global were amongst those who financed in Cred’s seed fundraiser last year.
According to the working of the company, individuals with high credit scores can execute credit card payments on Cred’s platform.
Appropriate payments will retrieve rewards alongside offers and discounts for health services, shopping, and other sites. The app will also detect hidden charges in credit cards and show them out to customers. Cred has partnered businesses, including furniture rental platform Furlenco, healthcare startup Curefit, travel booking site ixigo, and holiday rental platform Airbnb to present offers and discounts. The recommendations improve in value as customers use Cred exceedingly, as reported by Mint in November.
Shah’s first investment FreeCharge was procured by online marketplace Snapdeal for USD 400 million in 2015, in one of India’s most crucial consumer internet proceedings at the time. Just a few of years later, Axis Bank procured FreeCharge for ₹385 crore (USD 60 million), as Snapdeal scampered to increase capital.