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August 5, 2019

Cred to raise $125m in new funding

Indian credit card bill payment startup Cred is reportedly in advanced talks to raise $125m from new and existing investors.

The move will increase the valuation of the company to around $450m to $500m, sources familiar with the matter told Livemint.

The company’s existing investors Sequoia Capital, Ribbit Capital and Apoletto Asia, have already invested $65m in the firm. New investors such as Hillhouse Capital and Tiger Global Management are also expected to join the round.

However, the companies did not respond to Livemint queries on the reported move. If successful, the deal will be one of the largest Series A funding for an Indian start-up.

An investor, aware of the negotiations, was quoted by the publication as saying: “The company has a large volume of flows.

“It now needs to build a sustainable business, and this kind of capital should snuff out any lingering competition and give space to grow fast.”

The report comes in just a week after Cred raised $4m from American venture capital firm Sequoia. With this investment, Sequoia holds a 12.68% stake in Cred.

Users can use Cred’s platform to make credit card payments. They are also eligible for rewards, offers and discounts on timely payments.

The start-up has partnered with several brands including BookMyShow, Urban Ladder, Airbnb, FreshMenu and CureFit among others.

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