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Kunal Shah CRED: Success Story of Failure To Enter Unicorn Startup

The story behind their Struggle and Success. Kunal Shah faced a serious dilemma before starting CRED. Read on to know more.

CRED’s founder, Kunal Shah was born and brought up in Mumbai, Maharashtra. Also, he is among the top 5 entrepreneurs in India 2022. He is an investor and businessperson by trade. Also, He launched Freecharge, which he eventually sold to Snapdeal in 2015. Additionally, he invested the proceeds from selling his business in companies such as Unacademy, a startup providing e-learning services, Razorpay, a billion-dollar Fintech company, Pinata, and many others.

The Success Story Of CRED

What is CRED?

CRED, launched by Kunal Shah in 2018 is an Indian Fintech business based in Bangalore. The business compensates customers who pay credit card bills through their app. Moreover, it is now a popular and secure payment option used by 5.9 million people. Moreover, 20% or more of the credit card holders may bill in India in 2021 via CRED.

Currently, the company is among India’s best-funded fintech firms, with a valuation of more than $500 million. With over two million members, the business is on course to turn a profit by 2020.

Additionally, it is reshaping financial services in India and will continue to do so in the future. You should opt for CRED if you’re seeking a reliable credit alternative!

What services does CRED offer?

Initially, the Unicorn Startup was just offering credit card payment services, but it is currently extending its reach into additional financial industries.

Approximately 70 lakh people are using the app, and that figure is growing. Let’s look at the services that the app offers.

  • You may handle all of your credit card payments through the Indian fintech company’s one app.
  • You receive notifications from the app on a regular basis with information about and reminders for your credit card payments.
  • For new users, the mobile app offers prizes and money.
  • Upon successful payment, IT awards reward points.
  • streamlined payment procedures.
  • Additionally, it offers services for loans, rent, and insurance.

How CRED makes money?

It differs from other businesses in that it doesn’t receive VC capital and generates revenue right away.

Users have access to special incentives and privileges from companies like Ola, Zomato, Cleartrip, and many others through this membership platform.

Users must pay a monthly subscription charge to sign up. They receive access to special offers and discounts from their partner brands in exchange. Whenever Cred facilitates a transaction, it receives a commission.

Currently, it has more than a million subscribers and is expanding at a 30% monthly rate. The company intends to employ more employees, expand into new markets, and increase its brand collaborations with the funds raised from its most recent round of fundraising.

CRED business model

To build the business, the company relies on a “hole and hook model.” Many credit card users frequently miss deadlines for making past-due payments.

Customers who utilize credit cards and make their payments on time will receive perks from the business. In exchange for benefits, people receive priceless gifts.

The business created a “hook” in the rewards program and a “hole” in the credit card payment system. They make their product a point of bragging because they give their clients alluring benefits.

Unicorn Startup And Their Vision

The primary goal of the company was to improve loan availability and affordability for Indians.

They created a technology platform that allows them to provide loans at cheaper interest rates than conventional lenders.

The business also provides a range of financial products to assist its clients in improving their financial management.

In order to ensure customer satisfaction, the startup strives to provide the best experience possible.

Moreover, it is a social enterprise that is passionate about leveraging technology to help those who need it most access financial inclusion. The business is now operating in India, with plans to grow in the future.

Brand Partners

For its clients, the business provides a variety of prizes and coupons. It has been successful in securing a number of well-known Indian brands as partners. Distinguished brand partners include:

  • Samsung
  • Cure Fit
  • AJIO
  • Dineout
  • The Lalit
  • Myntra
  • Puma
  • Ethos
  • Jio Saavan

The Story Behind Struggle and Success

Before launching the business, Kunal Shah was in a difficult situation. He received an offer to join the Indian investment firm Sequoia Capital as a partner. But the businessman decided against becoming an investor and instead founded the company.

The business recently registered as an IPL sponsor and has begun receiving payments. Although it lost money in its first two years (63.90 crores and 378.89 crores), it has kept on giving its people helpful services. Investors have faith in the company. This is because it offers a futuristic revenue model.

Kunal responds, “I think our concentration on producing a great product and giving an exceptional user experience that helped us stand out from the competition,’ when questioned about the secret to his success.

Additionally, to succeed, he also thinks it’s critical to have a good team. “I am lucky to work with a fantastic group of bright people that support my goals and are as driven as I am to see CRED succeed. This would not have been possible without them.

Shortly, the business intends to broaden its offerings and make it simpler for people to improve their financial situation. We hope their future activities are successful!

Furthermore, there are more than 25 investors in the company, including 10 lead investors. Below is a list of the principal investors:

  • DST Global
  • Dragoneer Investment Group
  • Sofina
  • Tiger Global Management
  • Coatue
  • Insight Partners
  • Falcon Edge Capital

There are numerous routes to success. For CRED, a young entrepreneur’s passion resulted in the creation of a prosperous business. The fintech company, which began as a little side project, has grown into a successful enterprise with ambitious goals for the future.


CRED is continually growing and offering its consumers new services. The concept of CRED is to reward loyal and trustworthy credit card users. The popularity of CRED is rising daily. According to October 2021 estimates, it was worth $5.5 billion.

Additionally, CRED secured a deal with the BCCI for Rs 120 crore and became the official sponsor of the league in 2020–2022.

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