CRED Business And Revenue Model – How Does CRED Make Money?


CRED, a Bengaluru-based fintech platform, has revolutionized credit card payments, rewards, and management services. Founded in April 2018 by Kunal Shah, the former founder of Freecharge, CRED offers users a convenient and comprehensive solution for their credit card needs.

With CRED, users can make credit card payments through a user-friendly app, while also gaining access to exclusive offers and discounts. The platform simplifies credit card bill management, allowing users to track expenses, pay bills on time, and earn rewards points. By consolidating all credit card dues in one place, CRED helps users streamline their financial obligations.

In April 2021, CRED achieved a significant milestone by becoming a part of the Unicorn Club, a prestigious group of startups valued at over $1 billion. With a valuation of $2.2 billion, CRED attracted funding of $215 million from prominent investors like Falcon Edge Capital and Coatue Management LLP.

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What is CRED, and How does it work?

CRED’s unique concept emerged from Kunal Shah’s vision to transform people’s lives after selling Freecharge. Inspired by the automated systems prevalent in developed countries, Kunal Shah identified the need for a reliable mechanism to enable hassle-free and timely payment of credit card bills without additional charges. CRED was launched in April 2018 with a mission to reward creditworthy individuals who paid their bills on time, enticing consumers with this innovative approach.

CRED’s User-Friendly Platform

CRED’s success can be attributed, in part, to its user-friendly platform. The company has designed an intuitive app that simplifies credit card bill management and rewards tracking. Users can set bill reminders, track payments, and earn rewards points within a single platform. This simplicity and convenience have made CRED a preferred choice among credit card users in India.

To get started with CRED, users can download the app and register their phone number. The app automatically detects the connected credit cards and verifies the user’s credit score. Those with a credit score above 750 gain immediate access to the exclusive features of the app, while others are placed on a waitlist. Once granted access, CRED scans email statements to extract essential details such as due dates, statements, and other service-related information.

CRED provides users with a centralized platform to manage their entire range of credit cards. Each payment made on the platform earns users CRED coins, which can be used to avail discounts on partner products. The app analyzes overall expenses, identifies hidden costs, and provides insights on credit limits, helping users avoid unnecessary charges. The app’s security features enable it to read email statements, providing users with a comprehensive overview of balances, due dates, bank charges, and expenditure breakdowns. Additionally, CRED’s smart statement feature simplifies credit card statements, making it easier for users to review and understand their expenses.

Business Model of CRED – How does CRED work?

The three pillars of CRED’s business model are its customers, the CRED app, and the partnering businesses. Customers are crucial as they use the app to pay their credit card bills and earn rewards. As more people join and utilize CRED, the network effect strengthens, expanding the platform’s reach and influence.

The CRED app serves as a user-friendly interface where customers can access and explore various offers available for paying their credit card bills. Through regular bill payments, customers accumulate CRED coins, which can be redeemed for rewards provided by partnering businesses.

The partnerships with businesses are integral to CRED’s success. By collaborating with businesses of all sizes, CRED offers them visibility and exposure to a diverse range of customers. This benefits the businesses by expanding their customer base and increasing revenue while providing users with a wider selection of rewards and incentives.

CRED Revenue Model – How does CRED make money?

In terms of revenue, CRED earns through listing fees paid by businesses to feature their products and offers on the app. Additionally, financial institutions gain access to user financial data, allowing them to tailor their offers accordingly. This data monetization is another source of revenue for CRED.

CRED offers a diverse range of products and services, including Rentpay, CRED Stash, Store, Credit Card Payments, and CRED Pay. Rentpay enables tenants to pay monthly rents using a credit card, providing an interest-free credit period and reward points. CRED Store offers member-exclusive products and experiences at special prices, which can be accessed using CRED coins. CRED Stash functions as a digital lending platform, providing users with a personal credit line.

CRED’s partnership with Razorpay and Visa resulted in CRED Pay, facilitating instant payments for brands through a D2C channel on their platforms.

Overall, CRED’s business model thrives on customer engagement, partnerships with businesses, and monetization of user financial data, allowing the platform to reward users, expand its offerings, and generate revenue.