CRED Valuation Drops to $3.5 Billion in Series G Round Led by GIC

Bengaluru-based fintech platform CRED has seen its valuation drop to $3.5 billion following its latest Series G funding round. The fintech unicorn raised $75 million, Lathe Investment, an arm of GIC, led the round. Other participants included Sofina Ventures, RTP Global, and QED Innovation Labs, promoted by CRED founder Kunal Shah. According to Financial Express, the Indian fintech raised a down round at a valuation $3.5 billion, which is 45% less than its 2022 valuation

CRED Down Round Reflects Market Sentiment

Over the past year, funding has slowed within fintech sector, particularly in high-burn models. While CRED continues to grow, the company is also working toward becoming more financially disciplined amid an evolving funding environment.

CRED recently launched a wallet feature that allows users to preload money for smooth and convenient payments across multiple merchants. It also became one of the early fintech platforms to adopt the Reserve Bank of India’s digital currency, offering an exclusive e-rupee wallet to select users. The digital tokens were issued in partnership with YES Bank.

In addition, the company introduced CRED cash+, a digital credit offering that lets members borrow funds by leveraging their mutual fund investments, without needing to redeem them.

Akshay Aedula, who leads product growth at CRED, “CRED cash+ allows members to borrow against their mutual fund investments without disrupting long-term growth. It offers a flexible line of credit with interest rates starting at 8.99%, making it a cost-effective alternative to traditional loans.”

The fresh capital from CRED’s Series G funding round is expected to be used for product innovation, expansion of financial services, and enhancing the app’s engagement features for its premium users. Sources say the funds may also support newer categories like CRED Mint (peer-to-peer lending) and CRED Pay (credit card bill payment gateway).

A Change for Indian Fintech Companies

India’s fintech down round also reflects a larger shift in investor preference. Startups are increasingly being evaluated on profitability, sustainable growth, and user monetization rather than just user base expansion. CRED’s model, which focuses on high-creditworthiness users, gives it a niche audience but also a limited scale compared to mass-market fintech players.

Despite the lower valuation, analysts believe that CRED is well-positioned for future growth due to its premium customer base and brand strength in the credit card and lending ecosystem. CRED’s journey will be closely watched as the Series G funding round led by GIC marks a turning point for the company.