There are many fintech and Silicon Valley start-up ventures like CRED who have a shared mission of indicting their next billion users to their financial services. Since India’s growth as a market has been progressively higher, the Fintech startups felt the need to address most of India.
So, there is an evident amount of hype, given that CRED which is a Bangalore based startup that is only nine months old going after their millions of user pool. They have been providing and building solutions to credit card users while incentivizing them to be more responsible with the money, thus improving their credit score.
A Brief Overview of CRED and their Current Aim
Kunal Shah who is the founder and CEO of cred has confirmed that CRED could raise around $120 in their financing round (Series B). However, he is yet to unveil more information. The startup was successful in raising an amount as high as $145 million as of yet with an estimated valuation of $450 million.
A regulatory filing has unveiled that their existing investors like DST Global’s Gemini, Ribbit Capital and Sequoia Capital led that round with additional participation from General Catalyst, Greenoaks Capital, Dragoneer, Tiger Global and Hillhouse Capital.
According to the official figures, there are around 50 million credit cards which are in circulation as of yet. There are millions who are oblivious to their credit score since they have never owned a card and neither have they taken a loan from any recognized body.
Shah doesn’t just want to go after the population, he also wants to focus on the existing users since it would be a success if the trust is established between him and the existing credit card users.
The Features that one can Expect from CRED
Users are offered with a varied range of features which includes tracking of money spent or reminders to check credit scores. But it doesn’t just end there, the users will be able to avail a range of offers that includes dining out discounts, gym membership or even service subscription at a discounted price.
CRED is entirely free to use and they don’t charge money for the other features they offer. In the upcoming months, CRED will be expanding the offers they provide with another feature that will help customers get single-click access to financial services of their bank. CRED earns most of the revenues from their partners that supply the app with offers.
The issue with third party intrusion in the Indian market
Their decision to focus on their existing users makes sense since it would primarily serve their customer and also provide them the user metrics of their active users. Shah wants to dissolve the third-party aspect that has pervaded the Indian market and help people understand that they can thrive without any third-party intrusion. A fundamental trust is what he is aiming for so that he can build an active network amongst the entities.
Shah is known for speaking the truth unabashedly which has won him the trust of investors. Freecharge, which is one of the biggest paying apps in India is his brainchild.
Latest posts by Aniket Srivastava (see all)
- VanEck and SolidX has Pulled the Plug on their Bitcoin ETF Proposal - September 18, 2019
- What is Cryptography: Beginners Best Guide - September 16, 2019
- What is Artificial Intelligence: Advantages and Disadvantages - September 13, 2019