CRED BUSINESS MODEL: Unique Way To Earn Exciting Rewards


CRED business model works as an online application that renders its users a reward on every credit card payment of their bills. It is a fin-tech startup founded in 2018. The founder of CRED is Kunal Shah who was also the founder of FREECHARGE which was ultimately acquired by Snapdeal in 2015.

CRED helps its users to keep a track of their multiple credit card payments and bills by offering a service where everything is pooled in a single place. It sends out timely reminders to its users so that they can keep up with their payments and on timely payments, it also rewards them by giving points which then can be redeemed from its partners.

Here is all the information that you should know related to Cred Business Model

CRED Business Model

cred business model

To use CRED’s services, one has to have a credit score of over 750. This app also demands its users to share certain information like credit card numbers, access to a user’s emails to track their spendings and due amounts, credit score, and how a user spends his money.

All this information is clearly specified in the privacy policy and terms & conditions of the application. In addition, a user is free to opt-out of such tracking.

How does CRED Earn Revenue?

  1. At the moment, CRED is not making any revenue but they are hopeful of it by launching additional services on their platform.
  2. During this pandemic, CRED launched two projects named:
    • Rent Pay and
    • Discover
  3. The former provides its users with the service of monthly rent payments and household expenses through their credit card and the latter is a brand discovery platform where different brands can list their products.
  4. CRED will charge a small amount of fee from their users to use Rentpay and from brands to display their brands on Discover. According to the stats, since its launch, around 120 brands are listed on Discover.

CRED Competitors

The world is full of challenges and if you’re in the exposure of the main market, you definitely can’t hide from it. CRED is competing with one of the most influential companies in India such as:

1. Paytm:

Paytm is also an online application that caters to its services like a money transfer from bank to bank, payments of bills, ordering food, movie tickets, and household expenses. Vijay Shekhar Sharma is the founder and CEO of Paytm and it holds an annual revenue of $278 million.

Also read: PayTM Business Model – Introducer of Cashless Transactions in India

2. PhonePe:

Similar to Paytm, allows its users to receive money and pay bills directly from the bank account or through a customized wallet. Its annual revenue is between $25-100 million.

3. Mobikwik:

Mobikwik also provides its services in the area of recharging and bill payment, money transfers from a digital wallet. It has annual revenue between $25-100 million.

Funding and Finances: CRED Business Model

cred business model
  • This application is currently receiving its funds from Sequoia Capital.
  • Through anonymous sources, CRED is planning to raise nearly $100 million and the money will be contributed by Sequoia Capital, Tiger Global Management, and Hillhouse Capital.
  • In 2019, CRED raised $120 million in Series A from Ribbit Capital, Greenoaks Capital, Dragoneer Investment Group & more, and it was valued at $450 million.
  • In 2020, CRED’s user base has seen a rise due to the marketing campaign which was going on during the Indian Premier League (IPL).

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