Bangalore based CRED, the members-only app which offers rewards and cash back to the users for making timely credit card payments has confirmed securing $120 million Series B capital. The latest tranche of financing comes from existing backers, Ribbit Capital, Gemini Investments, a personal investment vehicle of Yuri Milner’s DST Global, and Sequoia Capital.
The Reports come out after the latest regulatory filing by the firm which shows it raised $101.51 million. However, the founder and CEO Kunal Shah said that they have raised an additional $20 million.
Launched last year by Freecharge founder Kunal Shah, the serial entrepreneur, the platform's total investment with the current infusion now stands at $175.5 million. The other backers of the firm include the names like General Catalyst, Dragoneer Investment Group, Hillhouse Capital Group, Tiger Global Management, Sriharsha Majety, Amrish Rau and others.
The members-only app gives top rewards to the customers who make their credit card bill on time. The rewards come in the form of CRED coins and gems which can be redeemed across coffee shops, movie theatres, e-commerce sites, among others.
Notably, Cred does not charge any sorts of joining fees or for the services it offers. However, it gets revenue through the partnered companies whose offers it gives to the users through the CRED app.
As the credit cardholders in the country grow, CRED is bound to grow. It will be interesting to see if through such offers, the company can make the cardholders make timely payments.
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