Cred, a credit card and bill payments fintech unicorn, has entered the vehicle management space with 'Cred Garage', which offers its members concierge services, parking services, and more.
Cred Garage is a feature within the Cred App and will be rolled out to all its members starting 28 September, the firm said in a statement.
The vehicle management service is an extension of Cred's bill payment services and not a pivot, a company spokesperson told Moneycontrol.
"There is a significant overlap between unique credit card holders and car owners - both belonging to the top 10 percent of high-spending individuals with higher disposable income...Cred Garage is an extension of Cred's mission to improve the lives and lifestyles of its members," the spokesperson said.
Explaining its features, Cred said that on a single dashboard, members get priority 24/7 access to concierge services, timely reminders for bill payments, document management, and insights into spending.
Cred has also integrated DigiLocker into its app, so members can access essential documents like driver's licenses, vehicle registration certificates, and insurance papers whenever they need them.
"The app will also send reminders for essential tasks like pollution checks, emission tests, and insurance renewals to ensure members' vehicle stays in mint condition. Members can also renew motor insurance & get member-exclusive perks," the statement said.
This comes at a time when the average value of Unified Payment Interface (UPI) transactions on the platform has dropped to a third and its share of the credit card bill payment market has shrunk.
Moneycontrol reported on May 31 that the average value of a transaction on Cred through UPI dropped to Rs 4,529 in April from Rs 13,300 in January 2022, according to data on the website of the National Payments Corporation of India, which owns the platform.
In FY22 Cred recorded a net loss of Rs 1279 crore even as its revenue jumped by almost 340 per cent from Rs 95 crore in FY21 to Rs 422 crore in FY22. The company’s losses have more than doubled from FY21 at Rs 524 crore.
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