Digital payment company FreeCharge's Kunal Shah has finally started Cred, his new venture for which he had raised $25 million in financing which was led by venture capital firm Sequoia Capital along with Ribbit Capital. The platform will help people with high credits get loans, help users pay credit card bills. The ones with a great record on the payment front will be getting Cred Coins, a reward for maintaining a good credit score.
Talking about the venture, Shah said, “There is a lot of lack of awareness around credit card payments among a majority of people. They don’t understand many of the charges levied in their statements. Cred wants to address the lack of financial knowledge among consumers and how they should manage their money."
The platform has already joined hands with the likes of Airbnb, BookMyShow, Urban Ladder and FreshMenu where it will get customers. The platform will be assisting the customers with high credit scores understand their credit card statements as well. As per reports, the new venture of Shah is also looking to explore the insurance market in the country where it plans to reduce the cost of car or health insurance.
Interestingly, Shah said that his firm will hire the people with high credit scores. Shah has a credit score of 838 which a very good one. “Every single team member has a credit score of higher than 800. We had to reject 20% of the people we interviewed (at the top) because their credit scores were too low,” he said.
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