Indian fintech unicorn CRED is in advanced talks to raise between $100 million and $200 million in fresh funding, with the new round expected to value the Kunal Shah-led startup at $4 billion, a sharp drop from its $6.4 billion valuation in 2022. This significant valuation correction comes as the global fintech sector undergoes a reset, with investors prioritizing sustainable growth and profitability over rapid expansion. The funding round is likely to be led by Singapore’s sovereign wealth fund GIC, which also led CRED’s previous $140 million Series F round, and will see participation from existing backers such as Peak XV Partners, Tiger Global, Ribbit Capital, and QED Innovation Labs.
CRED’s decision to raise capital at a lower valuation reflects the broader trend of market rationalization, as seen with global fintech giants like Stripe and Klarna, both of which have experienced steep valuation cuts in recent years. Despite the markdown, CRED’s financial performance has shown marked improvement. The company’s revenue surged by 71% to ₹2,397 crore in FY24 from ₹1,400 crore in the previous fiscal, and total revenues for FY25 are estimated at around ₹3,000 crore. Operating losses have narrowed significantly, dropping to ₹609 crore in FY24 from ₹1,024 crore a year earlier, and the company has reduced its cash burn by over 50% in recent years, maintaining a cash reserve of approximately ₹1,000 crore.
Founded in 2018, CRED began as a credit card bill payment platform but has since evolved into a super app, offering UPI payments, utility billing, vehicle management, travel experiences, and more. The company has also expanded into lending, with its NBFC arm, Newtap Finance, managing assets worth ₹1,141 crore and maintaining a low net loss. In February, CRED launched a loan against mutual funds products, further diversifying its credit offerings and competing with established players like Jio Financial Services and Bajaj Finserv.
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CRED’s UPI platform has grown rapidly, making it the seventh-largest UPI payment app in India by transaction volume, processing 144 million transactions worth ₹55,000 crore in March 2025. The company’s focus on profitability is underscored by its plans to launch an initial public offering (IPO) within the next two years, joining a wave of Indian fintechs preparing for public markets.
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