Exclusive: CRED to launch co-branded credit card with IndusInd Bank

Finally, fintech unicorn CRED is set to enter the co-branded credit card segment. The Kunal Shah-led firm is partnering with IndusInd Bank to launch the card, according to three sources aware of the development.

“The company has been planning for a co-branded credit card for a long time but the final decision was made a couple of months ago,” said one of the sources, requesting anonymity.

The move marks CRED’s next major product expansion beyond its flagship credit card bill payments, lending and commerce offerings.

CRED also offers a range of services, including credit score tracking, hidden charge detection, bill payment reminders, and cashback. It also provides access to shopping, travel packages, and tools for managing vehicle insurance, FASTag, and related features.

As of June 2024, CRED had approximately 13 million monthly active users.

CRED was last valued at $3.64 billion post money after raising $72 million in a new round. Entrackr exclusively reported the development. The funding also marked a nearly 43% haircut from its $6.4 billion valuation in the Series F round, where it raised $140 million in June 2022.

According to sources, the launch is likely to happen within 12 weeks. 

Responding to Entrackr’s queries, a CRED spokesperson said that the company doesn’t comment on speculation. Entrackr has reached out to IndusInd for comment.

CRED is aiming for full-year profitability in FY26, but in FY24 its net loss widened by 22% to Rs 1,644 crore, which also included ESOP-related costs and taxes. In the same fiscal, the company’s revenue grew 66% year-on-year to Rs 2,473 crore. The FY25 annual report is yet to be filed.

Entrackr’s take:

This move will place CRED alongside a growing lineup of fintechs and consumer facing platforms including Slice, Uni, Scapia, OneCard, Fibe and Super.money that are tapping into the co-branded card space through partnerships with traditional banks.

CRED brings a lot to the table in a partnership for a credit card, considering its massive understanding of spending habits for a top tier customer segment it has cultivated assiduously and at high cost. There are also clear opportunities in the market right now, thanks to the confusion over perks like lounge access at airports, or the many other services and products that a top tier segment is still discovering in India.

Some of the largest players like SBI cards, ICICI and HDFC have all got their own share of issues, making them look tired for now.  Indusind bank on the other hand might need this deal more, considering its own patchy news cycle over the past year. That opens up good possibilities for a really good product.

CRED however will be looking for some quick wins as it seeks to cut down on losses or the kind of giveaways it has built up its user base on, which risks presenting an underwhelming product for prospects. But there is no doubt that a co-branded credit card from CRED would be something to look out for with great interest.