CRED raises $140 million in a new funding round, its fourth funding in a year and a half, as the Indian fintech startup attracts millions of high-credit customers and expands its offerings.
GIC, Singapore’s sovereign wealth fund, is leading the Bangalore-headquartered startup’s Series F funding round, which includes a secondary transaction, the startup said on Thursday evening. Existing backers Tiger Global, Sofina Ventures, Alpha Wave Ventures and Dragoneer also took part in the funding, which values CRED at $6.4 billion, up from $2.2 billion last April and $4 billion in October.
CRED started preliminary negotiations with a group of investors for this round last year, TechCrunch reported earlier.
The investment comes as CRED completes its acquisition of Smallcase, an Amazon-backed startup. In the early days of discussion, CRED was looking to invest in Smallcase, not acquire it, TechCrunch reported earlier this year. A CRED spokesperson declined to comment on the Smallcase deal.
Acquisition of Smallcase, which operates a platform helping a new generation of investors to participate in the Indian stock markets, will allow CRED to expand its offerings to customers. The startup, founded by fintech veteran Kunal Shah, helps and incentivizes people to improve their credit score by encouraging them to pay their credit card bills on time and earn rewards. But over the past year and a half, CRED has significantly expanded its offerings.
Today, the startup gives its customers discounts on luxury hotels and gives them access to a host of premium direct-to-consumer brands. Last year it also launched Mint, a peer-to-peer lending service where customers can lend to others on the platform at “beating inflation” rates.
Credit: techcrunch.com /