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Cred raising Series F capital at $6.4 billion

Ghaziabad
Ghaziabad

Kunal Shah-led fintech unicorn Cred is raising $a hundred and forty million in a Series F spherical led through GIC and current investors, the organisation stated in a assertion on Friday.

The brand new fundraise, which incorporates a number one and a secondary component, will fee Cred’s determine entity Dreamplug Technologies Pvt Ltd at around $6.four billion, the company stated.

Existing Cred investors – Sofina, Tiger Global, FalconEdge, and Dragoneer have additionally participated on this spherical.

Cred stated that the spherical isn’t always but closed.

VCCircle first pronounced approximately GIC’s hobby in Cred on April 7.

GIC, which invests in each public and personal markets, additionally owns a stake in different Indian fintech businesses, inclusive of Razorpay and Paytm.

With this investment, Cred is likewise seeing a large bounce in its valuation. It ultimate raised $251 million at a valuation of $four billion, whilst Tiger Global and Falcon Edge joined its cap table.

Founded through serial entrepreneur Shah in 2018, Cred began out as an app that shall we customers pay credit score card payments and rewards them withinside the shape of “Cred” coins, which may be redeemed throughout many associate businesses. Since then, the company has different into lending and e-commerce.

Cred has additionally been acquisitive. In October 2021, Mint pronounced that it had obtained liquor shipping startup HipBar Pvt Ltd to go into pockets bills business.

Later in December, Cred obtained company fee platform Happay.

Cred’s overall person base grew to 7.5 million in 2021, the organisation stated in March this 12 months, including that it enables over 25% of credit score card invoice bills. The organisation pronounced a 45% growth in its internet loss for FY21 after advertising and marketing fees soared in the course of the 12 months, in step with an legit report shared through the Cred in March. Cred’s loss widened to Rs 524 crore for FY21 from Rs 360 crore withinside the preceding 12 months. Its FY22 couldn’t be ascertained.

In FY21, the organisation spent Rs 222 crore on advertising and marketing towards Rs fifty seven crore withinside the preceding 12 months. However, the organisation’s sales from operations grew to Rs 88 crore from Rs fifty two lakh a 12 months earlier, taking its overall earnings to Rs 95.fifty three crore for FY21 from Rs 18.sixteen crore withinside the 12 months earlier.

About the author

BusinessUpdater

An MBA in HR and Marketing from AIMS Institute (Bangalore University), He heads digital business he has a rich experience that he has garnered from his previous organisations Including leading Banks, NBFCs & Genpact India. He is a serial entrepreneur and the founder of Heavy Group of Companies.

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