CRED, a fintech unicorn, will finally join the co-branded credit card market. According to reports, the Kunal Shah-led company is collaborating with IndusInd Bank to introduce the card.
One of the sources stated, "The company has been planning for a co-branded credit card for a long time but the final decision was made a couple of months ago."
Key Highlights
- CRED partners with IndusInd Bank to launch co-branded credit card, tapping into fintech credit market.
- Move underscores fintech trend: diversifying revenue through co-branded credit cards amid free UPI environment.
Beyond its primary credit card bill payment, lending, and commerce offerings, this move represents CRED's next significant product expansion.
Additionally, CRED provides a number of services, such as cashback, bill payment reminders, hidden charge detection, and credit score tracking. Additionally, it offers shopping, travel packages, and tools for handling FASTag, auto insurance, and other associated features.
About 13 million people used CRED each month as of June 2024.
CRED raised $72 million in a new round and was last valued at $3.64 billion post money. From its $6.4 billion valuation in the Series F round, where it raised $140 million in June 2022, the funding also represented a nearly 43% haircut.
The launch is anticipated to take place in 12 weeks, according to sources.
Also Read: Fintech Unicorn CRED Receives Rs. 617 Crore Fund from Multiple Investors
Although CRED aims for full-year profitability in FY26, its net loss in FY24 increased by 22% to Rs 1,644 crore, including taxes and expenses related to ESOP. The company's revenue increased 66% year over year to Rs 2,473 crore in the same fiscal year. The annual report for FY25 has not yet been submitted.
