CRED to launch a co-branded credit card with IndusInd Bank
What's the story
Fintech unicorn CRED is gearing up to launch a co-branded credit card in partnership with IndusInd Bank. The move comes as part of CRED's expansion strategy beyond its existing offerings such as credit card bill payments, lending, and commerce. The decision was finalized a few months ago after long-term planning by the company, sources familiar with the matter told Entrackr.
Service range
CRED's offerings and user base
CRED offers a wide range of services such as credit score tracking, hidden charge detection, bill payment reminders, and cashback. The platform also gives access to shopping deals, travel packages, and tools for managing vehicle insurance and FASTag. As of June 2024, CRED had an estimated 13 million monthly active users.
Fiscal outlook
Funding and financials
CRED was last valued at $3.64 billion after a $72 million funding round. The valuation was nearly 43% lower than the $6.4 billion valuation in the Series F round, where it raised $140 million in June 2022. Despite a 22% increase in net loss to ₹1,644 crore (including ESOP-related costs and taxes) for FY24, the company's revenue grew by 66% year-on-year to ₹2,473 crore.
Launch details
Competition in the fintech space
The launch of the co-branded credit card is expected to happen within 12 weeks, sources said. However, a CRED spokesperson refrained from commenting on speculation when approached by Entrackr. The move will put CRED in line with other fintechs and consumer-facing platforms like Slice, Uni, Scapia, OneCard, Fibe and Super.money that are also exploring partnerships with traditional banks for co-branded cards.