India’s CRED Wants to Reach $5.5B Valuation

Six months after a funding round that put its valuation at $2.2 billion, India’s CRED is hoping to double that figure.

As TechCrunch reported Monday (Oct. 11), the startup, which helps people boost their credit scores by assisting them with on-time bill paying, has begun to reach out to investors in an effort to reach a $5.5 billion valuation.

A source told the news outlet CRED has received numerous requests from investors and has held some talks about fundraising, which are in their very early stages.

Other sources say the Bangalore-based firm had recently finalized a $200 million-plus investment from Tiger Global and Falcon Edge Capital for a pre-money valuation in the neighborhood of $3.75 billion.

For its part, CRED disputes these claims, according to the report.

Read more: India’s CRED Announces $215 Million Fundraise At $2.2 Billion Valuation

As reported in April, CRED reached a valuation of $2.2 billion following a $215 million Series D funding round.

CRED has more than 7.5 million members — up from 5.9 million in April — who can receive incentives such as products from luxury goods retailers if they pay their bills on time.

To gain a CRED membership, customers must create an account with a mobile phone number issued in India. The firm works with credit card companies such as American Express, Standard Chartered, Citibank, HSBC, HDFC, ICICI, SBI, AXIS, Kotak, RBL and PNB, which “support Visa, Mastercard, American Express and RuPay cards.”

“With the credit card category in India expanding rapidly, we have a massive opportunity to shape responsible behavior,” founder and CEO Kunal Shah said earlier this year.

According to sources cited by TechCrunch, Shah has said he wants to use the new capital to invest in and acquire other FinTech startups.

CRED has already engaged with several other businesses, including a recent $5 million investment in the debt platform CredAvenue. The company has also expressed interest in expanding beyond India, the report said.