Kunal Shah’s Second Act: From FreeCharge Fame to CREDible Disruption

CRED was founded in 2018 by Kunal Shah, an Indian entrepreneur and angel investor already well-known in the fintech space. Shah graduated with a Bachelor of Arts in Philosophy from Wilson College, Mumbai. He briefly pursued an MBA at Narsee Monjee Institute of Management Studies (NMIMS) but dropped out within a few months. (Kunal Shah)

Prior to founding CRED, Kunal Shah co-founded FreeCharge with Sandeep Tandon in August 2010. FreeCharge was a financial services company that allowed users to pay bills and recharge mobile, broadband, DTH, and metro cards. FreeCharge gained significant traction, and in 2015, the e-commerce giant Snapdeal acquired it for ₹2800 crore (US$400 million) in cash and stock.  Shah also served as an advisor to Bennett Coleman and Co. Ltd. (Times Group) and AngelList. Kunal is also an Independent Director at Syrma SGS Technology Limited and Pine Labs.

After his time at FreeCharge, Kunal Shah noticed a significant gap in the Indian financial landscape: a lack of platforms that truly rewarded responsible financial behavior. Existing credit card systems often focused on penalizing late payments and extracting fees, rather than incentivizing timely payments and good credit habits. In April 2018, at the age of 35, he started CRED with his own capital.

 Shah envisioned a platform that celebrated and rewarded responsible credit card users.  CRED aims to build a community of trustworthy and creditworthy individuals, rewarding them with exclusive perks and benefits for paying their credit card bills on time. It allows users to pay their credit card bills and also allows users to make house rent payments and provides short-term credit lines. CRED has raised substantial funding from investors including DST Global, Sequoia Capital, and Tiger Global and it has been valued at around $6.4 billion. 

The Billion-Dollar Market: Why Fintech Is Booming

The global fintech market was valued at USD 340.10 billion in 2024. The market is projected to be worth USD 394.88 billion in 2025 and reach USD 1,126.64 billion by 2032, exhibiting a CAGR of 16.2% during the forecast period. North America dominated the global market with a share of 34.05% in 2024. (Fortune Business Insights)

FinTech companies provide various financial technology services, tools, or solutions to other businesses (B2B) as a service. These services are typically delivered over the cloud, allowing other companies to integrate and use financial technology capabilities without developing these technologies in-house. Moreover, financial technology providers offer a wide range of financial services and technology solutions, including payment processing, Peer To Peer (P2P) lending platforms, fraud detection, blockchain technology, and more solutions. 

The advent of open banking and the use of Application Programming Interfaces (APIs) enables collaboration between fintech companies and traditional financial institutions. This partnership provides fintech companies with the opportunity to leverage traditional banks’ data and infrastructure to deliver value-added services, develop innovative solutions, and improve customer experience.

The pandemic accelerated the digital transformation of financial services. As businesses and consumers increasingly turned to online and mobile banking, there was a growing demand for financial technology platforms. In addition, financial technology companies offering payment and transaction processing services experienced a surge in demand as e-commerce, contactless payments, and digital wallets became more prevalent during the pandemic.

CRED Isn’t Just an App: It’s a Movement for the Creditworthy

CRED strives to become more diversified by providing multiple solutions in finance. From launch of CRED store to CRED flash, they are continuously trying to incentivize users on the platform, and continuously rewarding credit card payments. Their ultimate vision to create more trustworthy communities, and more convenient methods for finance, has made them a top competitor in the fintech market.

Their core business model revolves around a premium, members-only approach. Users must have a high credit score to gain access to the platform, establishing a sense of exclusivity and trust. This high barrier to entry is not just about limiting access, but also about curating a responsible user base that is likely to engage with the platform in a financially prudent manner.

CRED functions on a multi-faceted business model by involving four parts.

– CRED App – This is beautifully designed for a user friendly experience.

– Businesses that provide offers on the app

– Users who pay their credit card bills

– CRED Mint

CRED addresses several pain points associated with credit card usage. The app simplifies credit card bill payments, provides reminders to avoid late fees, and consolidates multiple credit card statements in one place, making financial management easier. Further expanding its horizon, it enables users to pay their house rent, making the platform more diversified.

CRED generates revenue through several avenues. One of the most prominent is revenue from listing products and offers. Businesses that wish to promote their products or services to CRED’s affluent user base pay a fee for visibility on the platform. CRED also benefits from the consumer financial data, accumulating user’s data to introduce more offers that will benefit them. Other financial institutions can use the data for a fee.

More Than Bills: CRED’s Expanding Universe of Financial Products

CRED has evolved into a comprehensive platform extending far beyond simple credit card bill payments. It now offers a suite of products designed to incentivize responsible credit behavior and provide members with exclusive benefits across various lifestyle domains.

Credit Card Management and Bill Payments

At its core, CRED simplifies credit card management. The platform enables members to manage and pay bills for credit cards from all major Indian banks, including HDFC, ICICI, SBI, and Axis. Supporting Visa, MasterCard, American Express, and RuPay, CRED ensures broad compatibility. Users benefit from timely payment reminders, detailed spending pattern tracking, and earn rewards for maintaining a good credit payment history. This central function promotes financial responsibility and makes managing multiple credit cards effortless.

Rewarding Responsible Behavior: CRED Coins and Rewards

CRED fosters positive financial habits through its unique rewards system. Members earn CRED Coins with each bill payment, which are then redeemable for a variety of exclusive offers, cashback opportunities, and curated experiences from premium brands. This mechanism effectively incentivizes timely payments and responsible credit behavior, transforming mundane bill payments into rewarding experiences.

Expanding Payment Options: CRED Pay and UPI Integration

Beyond traditional bill payments, CRED has expanded its payment capabilities. The CRED Pay feature facilitates seamless credit card payments directly to merchants, offering enhanced convenience and the potential for additional rewards. Furthermore, CRED supports UPI transactions, enabling members to scan and pay any UPI QR code, send money to any UPI app, and even make payments using their credit cards through UPI. This integration significantly enhances transaction flexibility and expands the utility of the CRED platform.

Curated Experiences: CRED Escapes and CRED Garage

CRED has broadened its offerings to include lifestyle solutions. Launched in March 2023, CRED Escapes is a curated travel platform providing members with access to luxury stays and exclusive privileges at over 50 domestic and international destinations. It focuses on handpicked properties, enhanced by additional perks specifically for CRED members. Similarly, CRED Garage offers vehicle management solutions, allowing users to track insurance policies, service schedules, and other vital information. This integration brings automotive management into the CRED financial ecosystem.

Monitoring Credit Health: Credit Score Tracking

Understanding and maintaining a healthy credit score is crucial, and CRED provides a convenient solution for this. Members can easily check and monitor their credit scores directly within the app, with data sourced from reputable credit bureaus such as CIBIL, Experian, and CRIF. This feature empowers users to stay informed about their credit health and make informed financial decisions.

Built for Trust: The Tech Fortress Behind the CRED Experience

The platform employs a multi-layered security approach to protect user data and ensure a secure environment. This starts with leveraging the scalability and security of Amazon Web Services (AWS) Virtual Private Cloud for cloud hosting. Further strengthening security, CRED utilizes perimeter security measures, including network firewalls, web application firewalls, DDoS protection, and content delivery networks to safeguard against external threats. 

At the host level, CRED implements anti-virus and anti-malware software, intrusion prevention systems, and automated patching, with servers launched using Center for Internet Security Benchmarks for Amazon Linux.

Data security is paramount, and CRED employs encryption at rest and application-level encryption for sensitive data, coupled with strict role-based access controls to limit data access. Demonstrating its commitment to security, CRED is certified under PCI DSS v4.0, adhering to industry-standard security controls for protecting customer card data.

CRED integrates security testing into its Continuous Integration and Continuous Deployment (CI/CD) pipeline. This includes conducting manual and automated vulnerability assessments and penetration testing using industry-leading tools. The platform employs both static and dynamic application security testing to proactively identify and mitigate potential threats. Further strengthening its security posture, CRED engages CERT-IN certified auditors for periodic external security testing and audits.

Data management at CRED prioritizes resilience and reliability. The platform implements data replication strategies to ensure data availability and uses snapshotting for data durability. Regular backup and restore testing are conducted to validate data reliability and recovery processes.

Their change management process ensures that feature releases are thoroughly tested for both reliability and security. An always-on Network Operations Center and a robust Information Security Management System are in place to quickly address and remediate any incidents.

Beyond internal development, CRED has strategically expanded its technological capabilities through acquisitions. The acquisition of CreditVidya in 2022 offered lending-as-a-service, enhancing CRED’s credit offerings. In 2023, CRED acquired Spenny, a savings and investment platform, integrating wealth management features into its ecosystem. Further expanding its financial services, CRED acquired Kuvera, an online wealth management and mutual funds startup, in 2024. These technological implementations and innovations position CRED as a secure, forward-thinking, and comprehensive platform in the fintech landscape.

13 Million Users Can’t Be Wrong: CRED’s Growing Clout in Fintech

CRED has rapidly established itself as a significant player in the Indian fintech landscape. A key indicator of this influence is its user base, which, as of June 2024, includes 13 million monthly active users. Beyond mere numbers, CRED has actively contributed to improving the financial health of its users. CEO Kunal Shah has reported that the platform has facilitated credit score enhancement for nearly 15 million customers. This focus on creditworthiness differentiates CRED and reinforces its appeal to a specific segment of the market.

Furthermore, CRED’s foray into the Unified Payments Interface (UPI) space has been remarkably successful. Launched in April 2023, CRED UPI has quickly climbed to the fourth position among UPI platforms in India. This achievement is particularly noteworthy considering CRED’s deliberate focus on a niche user base. 

The company’s achievements and the leadership of its CEO, Kunal Shah, have garnered significant recognition. Shah was honored as one of the Top 20 CEOs at the IBT Awards 2024, acknowledging his impactful leadership within the fintech industry. His contributions have also been recognized through inclusions in Fortune’s “40 Under 40” and the Economic Times’ “40 Under 40” lists. 

When Smart Brands Collide: How CRED is Expanding its Power Circle

One key strategic partnership is with Performics India. CRED appointed Performics India to manage its performance marketing. The goal of this partnership is to improve how CRED attracts new users by using data-driven strategies.

CRED has also made strategic acquisitions to broaden its capabilities. In 2022, CRED acquired CreditVidya. This acquisition strengthened CRED’s ability to offer lending services, especially to customers who may not have traditional credit scores. 

Later, in 2023, CRED integrated Spenny, a savings and investment platform, into its ecosystem. This integration expanded CRED’s offerings in the area of personal finance management. In early 2024, CRED acquired Kuvera, a wealth management startup. This acquisition allowed CRED to offer its users mutual fund investments and portfolio tracking features.

In terms of marketing, CRED’s sponsorship of the Indian Premier League (IPL) has been a successful collaboration. This partnership has significantly increased CRED’s visibility and aligned the brand with a premium audience.

The Billion-Dollar Club: How CRED’s Valuation Soared with Vision

CRED has secured a total equity funding of $867 million across 10 rounds, with participation from 91 investors, including 62 institutional investors and 29 angel investors. The most recent funding round, a Series F, occurred in July 2024, raising $2.4K with investors like Kalaari Capital, Z47, Bharat Innovation Fund, Siddharth Parekh, and Rahul Mehta. (Tracxn)

Another Series F round in June 2022, CRED raised $140 million, resulting in a post-money valuation of $6.2 billion. Investors in this round included Lathe Investment, GIC, Tiger Global Management, Sofina, Alpha Wave Global, Dragoneer Investment Group, Rise Global Capital, SF Roofdeck Capital, and DF International Partners.

Earlier funding rounds include a $251 million Series E in October 2021, which valued the company at $3.8 billion post-money, and a $215 million Series D in April 2021, which valued the company at $2.1 billion post-money. Prominent investors such as Tiger Global Management, Alpha Wave Global, Coatue, Insight Partners, and DST Global participated in these rounds.

In terms of revenue, CRED has shown significant growth over the years. According to company filings, the revenue for FY 2022-23 was ₹1,484.6Cr, a substantial increase from ₹422.6Cr in FY 2021-22, ₹95.6Cr in FY 2020-21, ₹18.1Cr in FY 2019-20 and ₹3Cr in FY 2018-19. A Series E round in October 2021 showed a TTM (Trailing Twelve Months) revenue of $38.5 million with a revenue multiple of 92.9x. Prior to that, a Series D round in April 2021 reported a TTM revenue of $16.5 million, with a revenue multiple of 113.9x.

CREDibly Disruptive: What Founders Can Learn from India’s Coolest Fintech 

CRED has carved a unique space in the Indian fintech landscape by focusing on a premium user base and rewarding responsible financial behavior. By offering exclusive rewards and benefits for timely credit card bill payments, CRED incentivizes financial discipline while simultaneously building a valuable network of high-spending individuals. This innovative approach to credit card management, coupled with its sleek user experience, has enabled CRED to rapidly gain popularity and expand its offerings beyond bill payments into areas like lending and commerce.

The success of CRED demonstrates the potential for innovation within the fintech sector. If you’ve been toying with an idea that could revolutionize the usual way, now is the time to take action. Don’t let your idea remain just an idea; explore its potential and bring it to life.

To further fuel your entrepreneurial spirit and gain insights into other innovative ventures, we encourage you to explore the other insightful articles available on Venture Kites. Discover how other companies are disrupting traditional industries and learn from their journeys. The world of entrepreneurship is constantly evolving, and continuous learning is key to staying ahead of the curve.