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  • 6 Jul 2022

  • 6 Jul 2022

CRED: Creating A Creditworthy Community

CRED is a Bangalore based startup, which offers rewards to consumers, whoever use the platform for paying their credit card bills. It is basically a bill payment application. The company protects the data and the information of the users. It marks its importance in being totally safe and secured.


We want to create a community of creditworthy. We want to re-imagine the ideal way of life that works on two-way trust and respect.


We started CRED keeping in mind two objectives. The first was to enable a good life for creditworthy individuals, and the second was to incentivize good financial behavior to expand the base of creditworthy people in the country.

CRED works on Hole & Hook model. Hole means whether there is a big gap in the market, and the people do not get rewards, so Hook was brought to give rewards to the people.

It has built its credibility in the market. It pays 1000 credit points after paying a credit card bill of Rs. 1000. It has a 35% credit market share. In just two years, the company went from 0 to 2 Billion Dollars valuation and became one of the Indian startups to reach this milestone.


Kunal Shah

CRED, Founder, Kunal Shah

Kunal Shah is an Indian entrepreneur and founder of CRED. He began doing his first job as a junior programmer and worked as a CEO for many companies. He always had an interest in behavioral finance and Science. He founded CRED in 2018, which is a completely free app. It is a platform for the credit-card payment that rewards users with points for paying their bills.

How Does it Works?

CRED partners with businesses and provides them beneficial offers. The businesses visibility on the platform where people are already spending. It provides more offers for display on their application and ultimately gets more visitors to join and pay their bills on the app.


People pay the credit card bills using the concerned apps or they directly pay from the bank. They get many benefits on CRED for paying their credit card bills through the app. So many people avail the benefits of the platform and get them associated with it.


The app is designed beautifully with exceptional features associated with it. It is designed with UI and UX design, which allows the users to sign up on the app conveniently. The people finds all the offers provided by the platform on paying their credit card bills. They get CRED coins, which they can redeem for rewards.


CRED brings businesses on board and forms a tie-ups with them. It includes sponsored companies and makes deal with them. To make the deals happen, CRED has to include sponsored companies and create deals with them. The customers who use CRED are the potential customers who use credit cards, which attracts the interest of the companies and they makes deal with the platform.

CRED is a completely free app, which in return provides rewards and cashbacks from different businesses. CRED Four of Delta is the points and rewards that they give to their users. Many people does not pay their credit card bills on time. Also, some people pay their credit card bills on time, but do not get any benefit. It marks its importance in fulfilling the gap in the market. It pays the highest rewards to those who pay their credit card bills through this platform. The people can use those credit points at many places.

In phase 1, the company presents incentives in order to get customers to use their services and form a customer base. The company identifies the major problem in society, then it designs a system and brings a solution for that system. It also raises millions of dollars in funding, and ultimately, it encourages the customers to use the services, by delivering many offers.

CRED identified the biggest pains of the credit card holders, which are hidden charges, late fees due to forgetfulness, and extra interest. Then they brought massive cashback and offers to incentivize the act of on-time payment. It is now associated with around 30 lakh users, and processing 20% of all premium credit card transactions.

Next comes phase 2, which is about habituation. The people who have 2-3 credit cards, found the platform to be so simple and stopped using their conventional method, where they had to go through the long list of statements, or putting in efforts to dig in and find out whether there are hidden charges on each credit card. In phase 2, using their super-efficient system, companies get us habituated to new normal, wherein we no longer used to adjust to the hurdles of the system.

Later comes phase 3, which is based on irreversibility. In CRED, the people do not have to remember to pay their credit card bills, and they no longer have to remember when exactly is their due date or bother about late fees. It has brought irreversible change to our behavior, that the people never go back and follow their past system. CRED is yet to complete this phase. It is yet to change the significant part of the behavior of the consumers.

Now phase 4 says about the goldmine. Every investor waits for a goldmine, where the company walks on the pavement of progress and gets profit. CRED is sitting on a similar goldmine, because the consumers of CRED are the richest of 1% of the country, as their income are high and they make expensive purchases on regular basis.

Revenue Model

CRED, Revenue Model

For every Rupee of revenue that CRED generated, they generated Rs. 727, which is a massive cashburn. CRED store is an E-Commerce business, where companies can list their products and sell to CRED.

It makes money in two ways:

1. Product and Offer Listing Fees

Businesses pay the fee for the discovery platform, and CRED displays the products and offers from the business. There are offers placed by fashion retailers, Amazon gift cards and many more, which give their users a variety of rewards, which attracts the attention of users towards it. The users redeems the coins and avail the benefit of the offers provided. The business pays fees to CRED for sending the business to them, which marks the source of revenue.

2. User Financial Data

When the people pay their credit bills with the help of the app, it collects their financial data, which is another source of revenue for the platform. In return it offers the best offers to the people, which gets them associated with the platform.

In the year 2020, CRED spent a total expenses of Rs. 379.2 Crore, from which it got Rs. 0.5 Crore, and earned Rs. 18.1 Crore.

Whereas, in 2021, Rs. 619.4 was its total expenses, from which Rs. 88.6 Crore revenue from operations, and it earned Rs. 95.5 Crore.

[The images are being taken from the registered companies and belong to their respective owners only.]