Cred, the credit card payments fintech startup founded by Kunal Shah, is currently in discussions to raise between $100 million and $200 million in a new funding round, according to sources familiar with the matter. The potential deal would value the fintech startup at approximately $4 billion, marking a significant drop from its $6.4 billion valuation attained three years ago.
The fresh capital is expected to come primarily from existing investors, with Singapore’s sovereign wealth fund GIC likely to lead the round—just as it did during Cred’s previous fundraising in 2022. Other major backers, including Peak XV Partners, Tiger Global, Ribbit Capital, and QED Innovation Labs, are also expected to participate, the sources said.
“Discussions are underway with investors… the valuation will be lower than its 2022 round,” said one of the persons cited earlier in the story. “The plan is to raise fresh funds on the back of improved financial performance and a reduction in the company’s financial burn.”
Three years ago, Cred raised $140 million in a combination of primary and secondary transactions, led by GIC, which propelled its valuation from $3.8 billion to $6.3 billion.
“The focus on profitability at Cred coincides with its plan to tap the public markets in two years or so. The internal thinking is to have a few profitable quarters before its IPO (initial public offering)… The reduction in valuation is in line with how it will price its IPO,” said a person familiar with the goings-on at the company.
Over the last year, the Fintech startup has focused on cutting costs in an effort to reduce its cash burn and move closer to profitability. Although the company has yet to file its most recent financial statements, its revenue has been growing year-over-year. For FY25, total revenue is estimated to be around ₹3,000 crore, according to a source familiar with the matter.
“It has also reduced its cash burn by over 50% over the last few years and has around Rs 1,000 crore of cash in the bank,” the person said.
In FY24, Cred reported total revenue of ₹2,473 crore, with operating losses narrowing to ₹609 crore, a notable improvement from the ₹1,024 crore loss recorded the previous year.
In February, the fintech platform introduced a new loan product backed by mutual funds, expanding its credit offerings beyond traditional unsecured personal loans, which remain a significant source of revenue.
Cred also runs Newtap Finance, which had assets under management (AUM) of ₹1,141 crore and a net loss of ₹5.3 crore as of December 2024. Newtap Finance is primarily held by Newtap Technologies, a company fully owned by Cred founder Kunal Shah.
Launched in 2018 as a credit card bill payment platform, Cred has since diversified its business into commerce, lending, insurance, and UPI-based transactions.
As of March, the company ranked as the seventh-largest UPI app by transaction volume, processing 144 million transactions and handling payment values totaling ₹55,000 crore, placing it among the industry’s top players by transaction value.
