The FinTech startup CRED has developed a credit card management app to give customers in its native India better credit scores. And it just raised $120m to continue doing so.
The round was led by venture capital firms Sequoia Capital and Ribbit Capital as well as DST Global’s Gemini Investments. Sequoia Capital and Ribbit Capital were also investors in Indian online payments startup Razorpay’s $75m Series C round back in June 2019.
Other investors participating in CRED’s new round included Tiger Global, Hillhouse Capital, General Catalyst, Greenoaks Capital and Dragoneer. Tiger Global also participated in Razorpay’s Series C round.
The new investment means that the nine-month old startup has raised $145m to date, according to a report by TechCrunch.
The startup is based around the idea of encouraging users to be more responsible with how they use credit cards. CRED enables users to check their spending, get reminders and track their credit scores through the app. It also incentivizes better usage by offering perks and rewards from companies like Urban Ladder and Airbnb.
CRED founder and CEO Kunal Shah made a name for himself with his previous venture – FreeCharge, the prepaid mobile charging company. Having launched the startup in 2010, he sold it to e-commerce giant Snapdeal for $400m in April 2015.
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