Cred has raised ₹617 crore (approximately $72 million) in a fresh funding round led by Singapore’s sovereign wealth fund GIC and other investors. This latest capital infusion comes at a sharply reduced valuation of $3.5 billion, representing a 45% drop from its previous $6.4 billion valuation in 2022. The funding was raised as primary capital, meaning no existing investors sold their shares in this round.
The significant markdown in Cred’s valuation is reportedly aligned with the company’s plans to pursue a public listing in India within the next two years. The move reflects a broader trend in the fintech sector, where investors are increasingly prioritising sustainable growth and IPO readiness over rapid expansion. GIC, which also led Cred’s last major funding round in 2022, was joined by other prominent backers including Tiger Global, Peak XV Partners, and DST Global.
Despite the reduced valuation, Cred has demonstrated robust business performance. In FY24, the company reported a 66% year-on-year increase in revenue, reaching ₹2,473 crore, while its operating losses narrowed significantly to ₹609 crore from ₹1,024 crore the previous year. Cred has also broadened its portfolio beyond credit card payments, offering unsecured personal loans, secured lending products such as loans against mutual funds, and scaling its vehicle insurance platform, Cred Garage, which now manages over 11 million vehicles.
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The valuation reset at Cred underscores shifting investor sentiment in India’s fintech landscape, with a growing focus on profitability and readiness for public markets. Other fintech firms like Pine Labs, PhonePe, and Razorpay are also preparing for public listings, signaling a new phase of maturity for the sector.
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