Bengaluru-based fintech unicorn Cred has raised 617 crore rupee (US$72 million) in a new funding round, according to regulatory filings from the Registrar of Companies.

The round was led by Singapore’s sovereign wealth fund GIC, which invested 354.4 crore rupee (US$41 million) through its Lathe Investment arm.

Other investors included RTP Global with 74.9 crore rupee (US$8.75 million), Sofina Ventures with 25.8 crore rupee (US$3 million), and QED Innovation Labs, the family office of Cred founder Kunal Shah, which contributed 162 crore rupee (US$19 million). This development was first reported by Entrackr last month.

This funding comes as Cred’s valuation has reportedly dropped from US$6.4 billion in 2022 to about US$3.5 billion. GIC previously led CRED’s 2022 funding round, during which the company raised US$140 million.

Cred is known for its members-only credit card bill payment platform and has diversified its offerings in recent years.

New services include Cred Garage, a vehicle management platform, and Cred Money, along with the acquisition of the wealth management platform Kuvera.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Valuation reset despite revenue growth signals broader fintech recalibration

CRED’s sharp valuation drop from $6.4 billion to $3.5 billion comes despite the company posting impressive revenue growth of 66% to Rs 2,473 crore in FY24.

This recalibration follows a period of explosive growth when CRED’s valuation jumped from $806 million to $2.2 billion in just three months in early 2021, and then tripled to US$6.4 billion by 2022.

The substantial investment from founder Kunal Shah’s family office ($19 million) represents over 26% of the current round, suggesting strong founder conviction despite the valuation reset.

This trend reflects the broader fintech sector, where investors are now prioritizing sustainable business models over pure growth metrics, with many late-stage startups experiencing similar downrounds or valuation adjustments.

2️⃣ Strategic expansion beyond core offerings reflects evolving fintech playbook

CRED has transformed from a single-purpose credit card payment platform to a diversified financial services ecosystem targeting affluent consumers.

The company has methodically expanded into lending (CRED Cash), e-commerce (CRED Store with 1,800 brands), wealth management (through Kuvera acquisition), and even vehicle management (CRED Garage).