Kunal Shah's Funding Mystery Behind CRED Decoded - SCRIPT

Credit cards that actually the talk of the town, whether it could be the dazzling offers or the boring credit card bills, People in India are fled with Credit cards. That became the elite concern of CRED which handles millions of credit card transactions in a year.

CRED is a Bangalore-based fintech startup founded in 2018 by Kunal Shah, the founder of Freecharge, an Indian mobile wallet company. CRED aims to simplify the credit card payment process for its users by allowing them to pay their credit card bills through the app and rewarding them for paying on time.

one of the major advantages of CRED is that, its founder is clear about his ICP (Ideal Customer Profile). He is focused on the upper-middle-class and rich-class consumers who worship credit cards and their benefits. This makes CRED a dominant player in the credit card industry.

reference: NDTV

SCRIPT - CRED:

CRED's journey is decoded using the SCRIPT framework, which serves as the foundation for its unprecedented growth and impact. Let's dive deeper into each element of this remarkable success story:

In Our SCRIPT We are going to Use the Variables

S - Segment

R - Revenue

I - Innovation

P - Portfolio

T - Traction

Segmentation:

Sequoia Capital has been the major investor in the CRED followed by Rainmatter Capital, and Tiger Global Management...These VC firms have invested in startups like Venmo, SoFi, and Hubble.

Kunal Shah's appointment to the advisor board of Sequoia Indian division provides him with valuable exposure to a broad network of entrepreneurs, investors, and industry experts, which enhances the credibility, legitimacy, and funding opportunities for his startups

Revenue:

CRED has been successful in generating revenue through various sources. The app charges a convenience fee for every credit card payment made through the app, which has contributed to its revenue. Additionally, CRED has partnered with various brands to offer exclusive deals and discounts to its users, which has helped to increase its revenue. As of FY22, CRED is generating Revenue of $150 million with a valuation was around $6.4 billion, making it one of the most valuable fintech startups in India.

Innovation:

CRED has been constantly innovating its platform to offer a better user experience. The app offers a social experience, where users can interact with each other, share information, and learn about various credit card offers. Cred's decision to use Metal UI is a strategic one, as it aligns with the brand's values of exclusivity, premiums, and sophistication.

Cred's decision to brand its credit card users is another unique feature that sets it apart from other credit card management platforms. When a user pays their credit card bill on Cred, they receive Cred Coins, which can be used to redeem rewards and discounts.

This approach incentivizes responsible credit card usage and encourages users to pay their bills on time. It also creates a sense of community among users, as they can see who else is paying their bills on time and compete with each other to earn the most Cred Coins.

Portfolio:

CRED's founder, Kunal Shah(founder of Freecharge too), has a strong portfolio in the Indian startup ecosystem. He has been a successful entrepreneur and has invested in various startups, Unacademy, and Rapido, including Razorpay, a leading payment gateway in India. His portfolio has helped to establish CRED as a credible player in the Indian fintech industry.

Traction:

CRED's target audience is credit card users who want to manage their credit card payments in a hassle-free manner. The app is currently available to users in India, where credit card penetration is relatively low but growing rapidly.

CRED has been successful in capturing a significant portion of this market by offering a simple and user-friendly platform. As of 2023, the app has over 10 million users and has processed over $3.5 billion in credit card payments. The app has also been successful in building a loyal user base, with over 75% of its users paying their credit card bills on time.

So Based on these Variables We Have SCRIPTED the Art of Fundraising behind the Scenes with Bluelearn and If you got a minimum of two or more variables from SCRIPT, It is assured that you can Raise Funds Easily. Check out the SCRIPT Frame Work to Know more.

Using the SCRIPT framework, we can see that CRED has been successful in growing its user base, generating revenue, and building a strong community(traction). The company's focus on innovation, user experience, and a simple payment process has helped it become a leading player in the Indian fintech market. With its launch of CRED Pay, the company has positioned itself to continue its growth trajectory and remain a key player in the Indian fintech ecosystem.

Reference:

• https://cred.club/

• https://startuptalky.com/cred-success-story

• https://www.google.com/amp/s/m.economictimes.com/tech/startups/sequoia-tiger-global-lead-startup-funding-in-apr-jun-fintechs-attracted-most-funds-nasscom-report/amp_articleshow/92937530.cms

• https://www.google.com/amp/s/www.businesstoday.in/amp/entrepreneurship/news/story/creds-valuation-jumps-to-64-bn-with-new-funding-round-led-by-singapores-gic-337024-2022-06-09

• https://iide.co/case-studies/cred-marketing-strategy/

• https://www.crunchbase.com/organization/cred-6ab0

• https://www.linkedin.com/in/kunalshah1

Disclaimer: All these contents are published under SCRIPT and are truly meant for Educational Purposes Only, The information which is displayed here is based on Facts, data, and Assumptions. This Post is not meant to disrespect anyone, if you feel any objections please contact jasper.ji@xrosstalk.com.