CRED raises $140 Mn in Series F at $6.4 Bn valuation

Update: CRED has announced that it raised $140 million in Series F round at $6.4 billion valuation.

Original post follows

Credit card payment app and D2C discovery platform CRED has raised a new round from new and existing investors. This would be the maiden funding round for the Bengaluru-based company in 2022.

CRED has approved the issuance of 42,308 Series F CCPS at an issue price of Rs 145,846.98 per share to raise $80 million or Rs 617 crore, regulatory filing shows with the Registrar of Companies (RoC) show.

GIC (via Lathe Investment) has led the round with Rs 467 crore followed by Tiger Global, Sofina Ventures SA, Alpha Wave Ventures and DF International which have put in Rs 50.14 crore, Rs 50 crore, Rs 42.63 crore and Rs 7.51 crore respectively. The company may receive more funds in this round.

According to Fintrackr’s estimates, CRED has been valued at around $6.3 to 6.5 billion (post-money). The company’s valuation has jumped more than 60% as compared to $4.01 billion when it raised Series E financing round in October 2021.

CRED joins Razorpay [$7.5 billion], Swiggy [$10.7 billion], Pine Labs [$5 billion], Dailyhunt’s parent VerSe [$5 billion] and Ola Electric [$5 billion] which managed to raise a new round at or over $5 billion valuation this year.

The Kunal Shah-led venture has raised $546 million since 2021 and $626 million since December 2020. Its backers include Falcon Edge, Tiger, DST Global, Insight Partners and Coatue among others.

CRED is a credit card payments app with a direct to the consumer (D2C) marketplace and P2P lending via CRED Mint. The company had also acquired expense management firm Happay for about $150 million. Entrackr had exclusively reported the deal in December last year.

CRED has been focusing on increasing its use cases and enabled utility payment feature in April. On Thursday, NPCI Bharat BillPay, the wholly-owned subsidiary of National Payments Corporation of India announces the on-boarding of CRED as a key Agent Institution (AI) for providing easy bill payment solutions.

While the company is yet to disclose its financial results for FY22, CRED’s revenue soared 170X in the fiscal year ending March 2021 and stood at  Rs 88.6 crore. Meanwhile, its losses increased by 45% to Rs 523.85 crore.