Top 10 Interesting facts about CRED you shouldn’t miss

Amidst this pandemic situation, 24 start-ups of India entered into the Unicorn Club of 2021. Indian Market has seen a whopping rain of Unicorn start-ups in the first eight months of 2021. CRED, a fintech start-up grabs the tag for one of the fastest start-ups to get unicorn status. This amazing venture was started in 2018 by Mr. Kunal Shah, CEO of CRED. You may have seen their ads during the IPL match, as they are one of the official sponsors of IPL 2021. But, there is a great journey you probably don’t know about CRED and its CEO Mr. Kunal Shah. So, here we’ll present you 10 such fascinating facts about CRED that will boost your mind. Let’s look:

1. A Unicorn Startup 

Image of Kunal Shah along with logo of his company

Unicorn is a term prescribed for only the startups that have a valuation of over $1 billion. Yet another Indian startup set foot in the unicorn startups list. The most important factor for success for any company is its valuation and CRED has done an incredible job in this factor. The Bangalore-based fintech startup ‘CRED’ entered the unicorn club at a whopping valuation of $2.2 billion within a span of just 2 years. CRED is the sixth startup after Digital Insurance, Innovaccer, Meesho, Infra. Market and NBFC Five Star Finance, which has entered the unicorn club this year in India.

2. CRED holds 22% of all credit cards in India

Image showing CRED logo and some Credit cards

In just a span of 2 years, CRED is one of the most successful fintech companies. The figures that the company had taken in two years are itself saying its success. Let discuss this in numbers. In India, there are over 57 million cards issued (2013-2020) in the country. (In these 57 million cards, there are many users who use more than 1 card, which means the unique cardholders are less than the total card issued). CRED has a total user base of over 6 million users on its app. It holds 22% of all credit holders and 35% of all premium cardholders in the country.

3. 5 Major products of CRED

Image showing 5 major products of CRED

A great company is known for its products and services which they provide to their customers. If we talk about Cred, they are more than a normal credit bill payment app. The company mainly offers 5 products to their customers that are largely contributing to its popularity:

  • CRED RentPay
  • CRED RentPay allows customers to pay their monthly rent on a credit-based facility, directly from their app. While paying with your credit card you can also avail yourself of benefits like reward points, loyalty programs, and CRED coins on every rent paid on the app. The coins earned in the CRED app can be used to get cashback.

  • CRED Cash
  • CRED Cash allows customers an effortless and fastest digital way to get Credit. What effortless means is that customers don’t have to waste their time in the tedious application processes or physical visits to the bank. You can seamlessly be approved for the credit line up to 5 lac rupees.

  • CRED Store
  • CRED Store is an e-commerce store like the other online stores are. It is a hub of luxurious and premium product stores at very exclusive prices. The store app has over 1800+ brands like Jimmy’s Cocktail, ITC, Boat, Starbucks, and many more.

  • CRED Travel Store
  • CRED travel store provides users a facility to exclusively book their travel destinations on the CRED app. You can also avail ‘Buy Now and Travel Later’ option on premium stays like TAJ, ITC, and Lalit. This option enables the users to travel in the future to various luxurious destinations. You can also earn CRED points and exclusive packages on the company’s app.

  • CRED Mint
  • CRED Mint is the most unique facility ever provided by any fintech app. It allows the customers to invest their idle cash into fruitful investments and earn higher rates of interest than the traditional ones. In CRED Mint, you can lend your money to prospective borrowers and earn interest up to 9% on your investment. You can invest between Rs. 1,00,000 to Rs. 10,00,000 and this money will be lent to a trustworthy CRED member community.

    4. Earning Model of Cred

    Image of Coins

    While reading this article, you get to know that CRED is a fintech app for credit cardholders. But the main question arises here that providing so many rewards and benefits to the customers, how does CRED earn money through this? What’s the Earning model of Kunal Shah’s company. Here you know:

    How CRED makes money out of its business model

    • CRED has a discover platform in their app where they list curated products of various companies. CRED charged them a listing fee as per the products on their platform.
    • They collects your financial data and sold it to various company and financial institutes who are looking up for the data. These type of data are assets for various companies which can create a user base in future.
    • CRED app is completely free for their users and free to download on various app stores. The company does not charge any fee from their users but may be in future.
    • CRED RentPay allows their customers to pay their rent from their credit card to their landlord’s account. The tenants who pay the bill get some rewards in return. In this whole process, the company charged their users a transaction fee for the rent paid which is around 1%-1.5%.

    Watch Video: Ways in which Cred Earns money

    5. The amazing CEO- Kunal Shah

    Image of Kunal Shah's tweet

    Behind every successful startup, there is a great mind of the entrepreneur who makes it possible. And the great mind behind CRED is the most successful entrepreneur, Mr. Kunal Shah. You might have heard about him in various interviews or social media. As much as amazing the CRED is, so is its CEO. Here are some lesser-known facts about Mr. Kunal Shah:

    •  Kunal Shah was born on 20 May, 1983 in Mumbai, Maharashtra. He done his graduation in bachelor of Arts (philosophy) from Wilson College, Mumbai.
    • He is an MBA dropout from Narsee Monjee Institute of Management studies, Maharashtra.
    •  Building this fortune is not that easy for Kunal Shah. He started working in his teenage because of family’s financial problem. Also, he was not from any technical or business background as per his education qualification.
    • He started his first job as junior programmer in an outsourcing company. Later on, he worked as a CEO of many companies from year 2000 to 2010.
    •  He also worked as advisor at The Times Group and AngleList. He also served as Chairman at the Internet and Mobile Association of India.
    •  In the year 2010, he started his own venture ‘freecharge’ and it was one of the most promising technological company in India at that time. Later on, he sold freecharge to snapdeal for $400 million. He invested this large chunk of money in around 80 startups both in India and abroad.

    Last but not least, there is one famous quote from Kunal Shah which you will surely like:

    When you have not had money all your life, the value that you have for money is what it can do to other people’s lives.

    6. Benefits provided by Cred

    Image showing CRED's user interface

    For Credit Card users, Cred has made available a lot of benefits and some of them are: 

    1. When we do any transaction through Cred, we get a number of credit points equal to the payment amount of the transaction. Such cred points can be used in the reward section of Cred to buy vouchers for movies, food, cosmetics, and many more.

    2. We get 2% cashback up to Rs 1000 on the first Credit Card transaction through Cred. 

    3. We can earn money by referring this app to our friends. We get 10 gems if our friend joins this platform through our referral and when the gems counting reaches 30, it can provide us cashback up to Rs 1000.

    4. If we have multiple credit cards, then the app will tell us which credit card we should use for the particular transaction to get the maximum benefits

    5.  We can check and track our credit score free on Cred. It also provides us reasons for our low or high credit scores. Many of us don’t know what is credit score. It is the most important thing in Finance. The detail is mentioned at the end.

    6. If we don’t pay the Credit card bills on time, it will cost too much. Cred will send payment reminders that will ensure that you never miss your due date and thus saves your late fees, Interest and helps in improving your credit score. 

    7. User Interface: very ease of use. 

    8. We can also pay recurring expenses like Rent, education fees, etc., and earns some cashback.

    9. It also provides a well-maintained Spend analysis and the hidden charges that banks charge from us.

    7. Still, no Profit earned! 

    Image of Kunal Shah

    It’s very shocking to know that CRED hasn’t earned a single penny of profit yet. At the end of March 2019, the company incurred a loss of Rs 60.87 crore or Rs 1,585.54 per share. And in the year 2020 its loss roses from 60.87 crores to Rs 360.31 crore, or Rs 9,007.79 per share. It means a nearly 492% increase in loss from the previous year. But do you know there are advantages behind these losses?

    CRED is going with the customer-oriented strategy and extensive work on altering the behavioral design of the society by providing them a lot of offers, incentives, etc. just like most of the giant companies did in the past. For instance, when Jio got launched they gave out offers that almost looked unthinkable like free SIM cards, free calls, and the free Internet. And when this announcement happened, millions of people rushed to buy Jio sims. Jio did everything to maximize its number of users without even bothering about profits and incurred massive losses. And now we all know how huge amounts of profits Jio is earning. So, I think the anticipation of that strategy is what makes them billion-dollar companies, and the profit of CRED is not too far away.

    8. Helped in Donating Oxygen during Covid-19 Pandemic

    Image showing appreciation message by Milaap towards Kunal Shah

    In the course of the second wave of the ongoing corona pandemic, the supply of oxygen was a major disturbance in India. During such circumstances, CRED came out to help and partnered with India’s leading healthcare fundraising platform ‘MIlaap’. The company started a mission of allocating 1 billion liters of oxygen. The company allows its members to help to increase the oxygen supply for Covid patients by donating their CRED coins. Every 10000 coins will contribute 1000 liters of oxygen. Later, the company mentioned that more than its 7.5 lakh members contributed their CRED coins towards oxygen and the donation to the cause was Rs. 10 Crore. Milaap channels the fund raised to deploy oxygen in hospitals and healthcare nonprofits around the country via oxygen concentrators

    9. An agreement with IPL

    Image showing CRED as the official sponsor of IPL

    CRED signed a three-year agreement with IPL. It has become the official sponsor of IPL for the years 2020-2022. As a sponsor CRED has made Indian Premier League 2020 more interesting and rewarding for players and viewers. The company provides tremendous offers to the people during the tournament. Everyone who pays their Credit card bills throughout the power play overs in IPL matches can get cashback or jackpots and one person has a chance to get 100% cashback on their credit card bill payment. This offer is known as a CRED Power play. Moreover, there is no minimum bill payment limit to avail of this offer. And in return, IPL Campaign has increased the daily sign-ups for CRED Membership. Moreover, IPL Chairman Brijesh Patel said, “ We are very pleased to have CRED as the ‘Official Partner’ of the Indian Premier League 2020 to 2022”.

    10. You have to be a ‘Good Customer’ to Join CRED

    Image showing Credit score

    CRED is not an instant download and ready-to-use app. You have to be a very good customer to join the CRED. What we mean by ‘good customer’ is the requirements you have to fulfill to join the club. Once you download the app, it will ask you for some basic information and bank details. After that, CRED will save your Credit card and will check your credit score instantly, and let you know.

    The minimum score that CRED asks their customers is 750 points. If you have this figure in your credit score then you can join the premium CRED club instantly. If anyhow, you don’t have the minimum score, then you will be put on a waiting list and you can join the CRED club after you reach the minimum Credit score. The main reason to adopt this policy is to maintain a user base of trustworthy and loyal customers. The partner companies can trust this kind of loyal customer and can lend their money easily and without fear.

    (Credit score is basically a rating against your bank transactions. Whenever you apply for loans or credit cards in India, your Credit score plays a crucial role in your ratings. The way you do your transactions and handle your credit cards affects your credit score. For example, if you pay your bills timely or clear your bank loans on time then your rating will be considered as good. There are many factors that affect your good or bad Credit score.)

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