CRED, a Bengaluru-based fintech unicorn, is set to raise $75 million in a new funding round led by existing investors, including Singapore’s sovereign wealth fund GIC, RTP Global, and Sofina. Notably, founder and CEO Kunal Shah is contributing $20 million of his own capital to this round, underscoring his commitment to the company’s future.
Valuation Adjustment Reflects Market Realities
This funding round comes with a significant valuation adjustment, bringing CRED’s estimated worth down to $3.5 billion from its previous $6.4 billion valuation—a 45% decrease. This shift aligns with a broader trend of valuation corrections in India’s startup ecosystem, driven by tighter capital availability and increased scrutiny of business fundamentals
Strategic Use of Funds
The fresh capital is expected to bolster CRED’s core credit card payments business and support its expansion into new financial services, including lending and wealth management. The company aims to achieve full-year profitability in the current fiscal year, building on its recent financial improvements. Moneycontrol
Kunal Shah’s Continued Commitment
Kunal Shah’s $20 million investment in this round highlights his ongoing dedication to CRED’s mission and growth. As the founder and CEO, Shah’s substantial personal investment signals confidence in the company’s strategic direction and long-term prospects.
Conclusion
CRED’s latest funding round, marked by a significant valuation adjustment and strong internal support, reflects the evolving dynamics of the fintech sector in India. With a focus on profitability and strategic growth, CRED is positioning itself to navigate the challenges of the current market landscape.
