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Indian fintech CRED stated on Tuesday it has raised $251 million in a brand new financing spherical, its third funding this 12 months, at a valuation of $4.01 billion.
Present traders Tiger International and Falcon Edge Capital co-led the three year-old Bangalore-based startup’s Sequence E financing spherical. Marshall Wace and Steadfast additionally participated — and so did present traders DST International, Perception Companions, Coatue, Sofina, RTP, and Dragoneer. The startup was valued at $2.2 billion in an April spherical this 12 months and $806 million in a spherical it disclosed in January.
TechCrunch reported final week that CRED had finalized a financing spherical lately at a pre-money valuation of $3.75 billion. The outlet additionally reported that the startup has held preliminary talks a few new spherical, which might worth it at about $5.5 billion. A CRED spokesperson stated on the time that all the things within the story was inaccurate. ($3.75 billion pre-money valuation + $251 million new increase = $4.01 billion post-money valuation.)
CRED helps and rewards individuals enhance their credit score rating by encouraging them to pay their bank card payments on time. The startup has amassed over 7.5 million members. (India has about 25 million distinctive bank card customers.)
On its app, the startup gives its members entry to a spread of premium manufacturers. The startup, in contrast to most others in India, doesn’t give attention to the same old TAM of India — lots of of hundreds of thousands of customers of the world’s second-most populated nation — and as an alternative caters to a few of the most premium audiences.
“India has 57 million bank cards (vs 830 million debit playing cards) [that] largely serves the high-end market. The bank card trade is basically concentrated with the highest 4 banks (HDFC, SBI, ICICI and Axis) controlling about 70% of the full market. This area is extraordinarily worthwhile for these banks – as evident from the SBI Playing cards IPO,” analysts at Financial institution of America wrote in an earlier report.
“Only a few starts-ups like CRED are specializing in this high-end base and [have] taken a platform-based method (purchase prospects now and search for monetization later). Bank card in India stays an aspirational product. The underneath penetration would doubtless guarantee continued robust development in coming years. Extra time, the form-factor could evolve (i.e. transfer from plastic card to digital card), however the inherent demand for credit score is predicted to develop,” they added.
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