Amidst closing three-digit round, Cred bags $4 Mn from Sequoia

Established entrepreneurs in fintech space who have started their second gig find no trouble in raising venture capital money. While Kunal Shah, Ashish Kashyap, and Satyen Kothari already raised significant funding rounds, Shailaz Nag and Jitendra Gupta are currently finalising seed capital for their next brainchildren.

Amongst the aforementioned entrepreneurs, Shah-led firm Cred is outnumbering others in terms of investors interest. Amidst finalising a $120 million fresh round from existing and new investors, the company has raised Rs 27.55 Crore ($4 million) from Sequoia Capital India.

According to RoC filings, Cred has issued 20,179 Series B CCCPS shares priced Rs 13,653.31 each. Cred will use the fresh proceeds towards accelerating growth, expansion, marketing, and general corporate activities.

The fresh fund infusion for Cred has come at a time when it reportedly finalising a three-digit Series B round from Chinese investment conglomerate Hillhouse Capital and existing investors. The valuation of the company expected to shoot up to 5X (i.e; 400 million from $75 million). Cred had raised its maiden institutional round worth $30 million led by Sequoia.

The company also raised capital from several well-known entrepreneurs such as former PayU India CEO Amrish Rau, Truecaller co-founder Alan Mamedi, Swiggy’s co-founder, and CEO Sriharsha Majety. 

Cred lets credit card holders pay bills through an app, and get a bouquet of benefits via Cred coins. The virtual coins can be redeemed across coffee shops, movie theatres, e-commerce shopping among others. 

Sequoia that had also backed Shah’s previous venture - Freecharge is very bullish on Cred’s future. Besides, more US and Chinese investors also have been displaying significant interest in the venture. Morningside already invested in the firm while Hillhouse and General Catalyst are expected very close to investing in the firm.

Hat tip: paper.vc