PRESENTATION ON

START-UP
CRED
By :-Prajwal M A
 Cred Start-up Story
The goal was very simple. It was to create a platform where life could be made better and
systematic. The founder wanted to offer more privileges and benefits for the people having
good credit scores. And therefore, creating a flywheel effect for more people was important to
improve the scores. Everybody, starting from the startups to the government, has focused on
the masses. The founder of the company wanted to focus specifically on the people, the
responsible citizens who pay taxes timely. He felt that nobody had solved their problems
earlier.

Therefore, Cred was founded primarily to solve the problems of the taxpayers and reward them
with attractive rewards in return.
If you look at history, nobody has been rewarded for paying back on time. We want to fix that.'
Kunal Shah, founder of CRED
CRED is a Fintech platform headquartered in Bengaluru, which allows its users to make credit card
payments through its app and get exclusive offers. It was founded in April 2018 by Kunal Shah, Freecharge's
former founder. CRED lets you handle and pay off all your credit card dues. It not only gives exclusive
discounts on credit cards but also tracks expenses.

CRED entered the Unicorn Club in April 2021 with a valuation of $2.2 Billion that was accompanied by a
funding round led by Falcon Edge Capital and Couture Management LLP for $215 Million. With total Funding
of $722.2 Million, Achieving this status in just two and odd years is a sign of CRED's amazing business
model.
 What is CRED?
■ CRED provides the ability to reduce the pressure of handling multiple credit cards
and to help pay credit card payments on a timely basis. Users earn points that can
be used towards prompt purchases through the CRED application.
■ During his study, he found so many automatic products in developed countries
such as supermarkets with no cashiers, gas station without an attendant, etc. but
there's no such reputable mechanism that will allow people with zero extra
charges to pay the correct amount of credit card bills in due time.
■ It is best for creditworthy people. But the question was why should people pay
their bills of credit cards through their app, and so the idea came to reward the
loyal credit card users who paid their bills on time. CRED was introduced in April
2018 with this plan to draw consumers.
 How does it work?
Download and type your cell phone number in the CRED App. The app checks the cards connected to
the registered phone number until the account has been configured. If the credit score is greater than
750, users would be allowed to use the exclusive app. Otherwise, they have been sent to the waitlist.
When access is open, CRED apps will have access to the mail identification to read and scan the credit
card receipts, such as due dates, the services' statements, etc.

•CRED provides you with one location to handle your entire credit card range.

•Whenever you pay your credit card bills, certain CRED coins are issued that you can use to earn
discounts on different CRED partner products.

•It analyses the overall expenses, secret costs, and records loan caps and advises you of all this so that
extra charges can be avoided.

•CRED security is the app's functionality that reads the email statements with details on balance, due
date, bank costs, and bifurcation of expenditures.

•The smart statement feature allows consumers to simplify costs by reviewing the CRED it card
statements.
Business Model of CRED
 How does CRED work?
CRED rewards users for paying bills through the app. CRED partners with businesses to provide the offers.
As a result, the businesses gain exposure and traction on a platform where people are already spending. As a
result, CRED gets more offers to display on their application. Therefore, visitors have more reasons to join
and pay their bills through the app.

The 3 pillars of CRED's business model - Customers who pay credit card bills, The CRED app, and the
Businesses who provide offers on the app.

1. CRED's Customers - Many people pay their credit cards using payment apps or by directly logging into
their bank accounts. By using the CRED app, they can perform the same function of paying their credit card
bills more beneficially. As more people use CRED to earn benefits, they share those benefits more widely.

2. CRED App - The app allows users to sign up and see all the available offers on paying their credit card bills.
As you continue to pay bills, you accumulate CRED coins which you can redeem for the rewards.

3. Businesses that provide offers on the app - Bringing businesses on board and forming tie-ups with them is
imperative for CRED. The CRED app gives small and large businesses alike visibility as buyers of all types use
it.
 Credit score ranges from 300 – 900 points.
300 points are the lowest and 900 points is
highest, the higher number reflects good
credit score and the lower number reflects
bad credit score. Anyone with a good credit
score is considered as a good profile to lend
money and anyone with a bad credit score is
considered as a risk profile to lend money
hence it is easy to get loan with a good credit
score.

In order to access CRED programs, a credit score of more than 750 must be obtained. This
application also allows users to share certain data such as credit card numbers, access to
emails to track users' expenses and due amounts, credit score, and how they invest their
money. CRED rewards its users with CRED coins for bill payments which can later be
redeemed with the offers available. In simple terms, CRED provides a basic incentive to make
prompt bill payments. To make offers more attractive to the users, CRED partners with
various businesses. In turn, businesses achieve exposure to buyers from all walks of life.
CRED Revenue Model
 How does CRED make money?
CRED earns money from listing fees that businesses pay to display their products and offers on its app.
Moreover, financial institutions have access to the financial data collected from users in order to tailor
their offers accordingly.

•Through CRED, you can access products and offers from businesses that have paid to access Discover.
Among the offers are fashion retailers, spas, Amazon gift cards, and more. These offers give their users a
variety of rewards to pick from. As a result, it attracts users' attention. CRED receives a fee from the
business every time a user redeems CRED coins from the app to pick an offer.

•CRED collects your financial data as you use the app and continue to pay your bills to offer you better
offers in the future. This is their second source of revenue. Institutions are always searching for the
most reliable customers to use their credit cards, loans, and other products. To gain access to this data,
banks and credit card companies pay CRED.
CRED has no single best source of revenue. CRED has a varied product/service span - Rentpay, CRED
Stash, Store, Credit Card Payments, and CRED Pay.

• CRED Pay was developed in partnership with Razorpay and Visa. It provides brands with a D2C
channel, by offering them an instant payment experience on their platforms.

• CRED's RentPay allows the tenants to pay monthly rents using a credit card, where the amount is
transferred to the landlord's bank account directly. The main advantage that lies here is that the app
helps users get an interest-free credit period on rent and also lets them earn reward points on their
credit cards. CRED will charge users a transaction fee of 1% - 1.5% depending on the user's credit card
network.

• CRED Store is a member-exclusive selection of products and experiences at special prices. Every time
you pay your credit card bills on CRED, you receive CRED coins. These coins can be used to win
exclusive rewards or get special access to curated products and experiences

• CRED Stash is a digital lending platform that makes a personal credit line available to users in a
completely online manner. Here the Registration/ Subscription Charges is Nil. However, the bank
charges interest on money borrowed which is displayed on the app while availing the loan.
 Cred - Growth
■ Cred has shown steady growth throughout the years. Being a startup that was founded in 2018, it
successfully joined the unicorn club on April 6, 2021, closing its Series D round where the company
had mopped up $215 million. CRED controls "22% of all credit card payments in India on a monthly
basis,” said Kunal Shah in his statement released in April 2021.
■ Kunal Shah further took to his Linkedin profile on July 10, 2021, and shared highlights of the
milestones reached by CRED in the month of June:
 Cred – Acquisitions
Cred has acquired 1 company, Hipbar, till now, which it acquired on October 21, 2021. The company is
further looking to acquire Noida-based dining and restaurant tech solutions platform, Dine out, and the
alternate investment platform, Wint Wealth, as per the reports dated November 19, 2021. The Dine out
acquisition is reported to be between $25-50 mn while that of Wint Wealth is expected to be somewhere
around $50 mn.

Cred is looking to acquire Happay, as per the reports dated December 1, 2021. The deal has already been
sealed, as revealed by a source close to the company, who also added that the deal would be a mix of
cash and stock, thereby valuing Happay at over $150 mn. Happay is ought to be the second acquisition
for the company after Hipbar, which it acquired in October 2021.
 Is CRED App Safe?

YES CRED App is RBI Approved. Hence, it is safe.

 Cred – Competitors
The top competitors of the company are Paytm, PhonePe and MobiKwik.

• Paytm is the top competitor of Cred. It is a fintech app and payments platform that is headquartered in
Noida, Uttar Pradesh, India, and was founded in 2010.

• PhonePe is another notable competitor of Cred. It is also a digital payment and financial services
platform headquartered in Bangalore, India, which was founded in 2015. This app has the largest
market share of 46.04%, as of July 2021.

• MobiKwik is yet another fintech company, which supports digital payment options and is a rival of
Cred at the same time. It is headquartered at Gurugram, Haryana, India, and was founded in 2009.

The other competitors of Cred include digital payment applications and fintech companies like Google
Pay, Amazon Pay, and more.
 Conclusion
CRED partners to view incentives on the application to firms. In exchange, clients of
these firms become the consumers who redeem CRED coins for deals. With more
credit card customers entering the app, they can gain more tailored financial
details. Financial institutions such as banks and credit card firms profit from such a
profound strategy with reduced consumer transaction costs.
THANK YOU