Cred eyes $100–200 million fundraise at reduced valuation: Report

Earlier this February, Cred’s loan book crossed Rs 19,000 crore, making it one of the largest among fintechs.

Credit card bill payment platform Cred is reportedly in discussions to raise $100–200 million in fresh funding, primarily from existing investors. The new round is projected to value the Kunal Shah-led fintech at around $4 billion - down from its $6.4 billion peak valuation in 2022, according to an Economic Times report.

The report, citing sources familiar with the matter, further states that this fundraise will likely be led by Singapore’s sovereign fund GIC. Notably, GIC had also spearheaded Cred’s previous round. Other major backers such as Peak XV Partners, Tiger Global, Ribbit Capital, and QED Innovation Labs are also expected to participate.

Moneycontrol could not independently verify the report.

According to sources cited in the Economic Times report, the company is aimed at securing new capital based on improved financials and significantly reduced cash burn.

Cred had last raised $140 million in 2022 in a mix of primary and secondary transactions. The company is reportedly focusing on profitability as it eyes a public listing within the next two years.

Earlier this February, Cred’s loan book crossed Rs 19,000 crore, making it one of the largest among fintechs. Its NBFC arm -  Newtap Finance -  contributes 2.7 percent of AUM, while the rest is from six partners.

Cred maintains a low NPA of 1.1 percent versus the NBFC average of 2.9 percent, owing to its affluent user base. Lending is now a key revenue stream alongside payments and insurance. Its revenue surged 67 percent year-on-year to Rs 2,473 crore in FY24, with operating losses down 41 percent. It targets EBITDA breakeven by FY26 despite rising credit costs.