CRED, led by high-profile entrepreneur< Kunal Shah, said the company has raised over $80 million and has bought shares worth $1.2 million from employees. It is a recent interview with TechCrunch, Shah said that about 10 percent of CRED’s capability is currently allocated to employees, and those who held vested stocks were eligible to sell up to 50% of their shares back to the startup in its first ESOP liquidity program.
“We believe that startups should think about creating wealth for every shareholder, including employees.” CRED has gotten twice the number of its customer base to about 5.9 million in the past year. The startup said that the median credit score of its customer was about 830, and about 30% of its customer base today holds a premium credit card.
CRED is one of the biggest startups in India, because of the rate at which its valuation has increased and the amount of capital it has been able to raise in a short period of time. The question on everyone’s mind is, how it makes money. Shah said CRED makes money by cross-selling financing products for which it has a revenue-sharing arrangement with banks and other financial institutions.
One of the biggest propositions of CRED is that it has been able to court some of the most sought-after customers in India. Unlike many other startups and giants such as Google and Facebook, CRED is not going after the next billion users.
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