Fintech unicorn CRED plans to raise $75 million in a Series G funding round, signaling a strategic shift in investor expectations as the company prepares to accept a lower valuation than in its previous funding. Sources close to the development revealed this to CNBC-TV18, with Entrackr being the first to report the news.
This round will mark a down round for CRED, a departure from its earlier high-flying valuations. However, the company remains committed to long-term growth and profitability, especially as the Indian fintech market continues to evolve.
GIC to Lead the Round
The upcoming Series G round will be led by GIC, Singapore’s sovereign wealth fund. GIC will make the investment through its special-purpose vehicle, Lathe Investment. The fund first joined CRED in its Series E round and has since remained one of its committed backers.
Other returning investors, including RTP Global and Sofina, will also participate in this round. RTP Global invested in CRED’s Series A round, making it one of the earliest believers in the startup. Sofina joined the cap table during Series C and has maintained its confidence in the company through multiple funding stages.
Founder Kunal Shah’s Significant Commitment
Adding a personal vote of confidence, founder and CEO Kunal Shah will inject approximately $20 million into the round. Shah will channel this contribution through his venture capital firm, QED Innovation Labs. Currently, he and QED Innovation Labs jointly hold just under 23% stake in CRED.
Shah’s decision to participate personally underscores his long-term belief in the company’s mission. It also serves as a positive signal to other investors and stakeholders in a time when many startups struggle to attract capital without significant valuation cuts.
A Down Round Signals Market Correction
CRED’s Series G round comes at a lower valuation than its last funding, indicating a market correction and aligning with a broader trend across the Indian startup ecosystem. Investors are now emphasizing profitability, cash flow, and unit economics rather than just growth and user acquisition.
This funding round reflects how investors now demand higher accountability and clearer paths to revenue. CRED, known for its premium credit card user base and loyalty programs, has recently taken steps to broaden its revenue streams through CRED Pay, CRED Mint, and CRED Store.
Although CRED had previously raised money at valuations north of $6 billion, this round is expected to value the company below that figure. Sources say the new valuation is more in line with the company’s current business metrics and market conditions.
CRED’s Evolution in the Fintech Space
Founded in 2018 by Kunal Shah, CRED built its user base around a community of high-credit-score individuals, offering rewards for timely credit card payments. Over the years, CRED expanded into peer-to-peer lending, e-commerce, and bill payments, creating an ecosystem of financial services targeting affluent users.
CRED positioned itself as a premium platform, tapping into the top 1% of India’s consumer base. This strategy helped it stand out in a crowded fintech space where most players target financial inclusion for the underbanked.
In the past year, CRED focused heavily on product diversification and monetization. It launched CRED Mint, a lending product that connects users for peer-to-peer loans. It also expanded CRED Pay, a checkout experience for online and offline merchants, which integrates directly with users’ credit cards.
Why Investors Still Back CRED
Despite the valuation cut, investors still see long-term potential in CRED’s ecosystem approach. The startup has built a loyal customer base, enjoys high engagement, and continues to innovate on user experience and product offerings.
Investors appreciate CRED’s focus on unit economics and premium positioning, which allows it to attract a valuable segment of consumers and merchants. These factors ensure high-quality data, stronger cross-sell opportunities, and better monetization than mass-market fintech platforms.
The fact that GIC, Sofina, and RTP Global are doubling down on their investments even in a down round shows continued faith in CRED’s business model. It also highlights the strategic patience of long-term institutional investors, especially in a challenging funding environment.
CRED’s Future Strategy
As CRED prepares to close its Series G round, the company appears focused on financial sustainability and measured growth. Management has scaled back on aggressive expansion and shifted toward optimizing operations and enhancing user experience.
The fresh capital will help CRED strengthen its core financial products, improve merchant partnerships, and possibly explore new monetization levers. Given the scrutiny from investors, CRED is also expected to sharpen its focus on profit margins and cost control.
At a time when many startups face funding winter, layoffs, and valuation markdowns, CRED is opting for a more realistic valuation in exchange for strategic backing and operational runway. This decision could prove wise as the startup ecosystem transitions from hyper-growth to sustainable performance.
Industry Outlook and Market Trends
India’s fintech sector has seen immense growth over the past decade, but 2024-25 marks a period of market normalization. Startups must now meet stricter performance benchmarks to secure funding.
VCs and institutional investors no longer reward sky-high valuations without corresponding growth in revenues. Instead, they now prioritize clear monetization, customer retention, and business scalability.
In this context, CRED’s decision to raise funds despite a valuation cut reflects its pragmatic approach. It understands the value of liquidity and investor trust in a constrained capital environment.
Startups that adapt to this shift—by raising money at sustainable valuations and prioritizing efficiency—stand a better chance of surviving and thriving in the long run.