CRED - Business Model and Revenue Model

Michelle D'souza Michelle D'souza
May 5, 2021 7 min read
CRED - Business Model and Revenue Model

CRED is the first technology in India to pay the user’s credit card bills on time. It was founded in April 2018 by Kunal Shah, Freecharge's former founder. Kunal shah began CRED with the intention of creating an exclusive society with the most credible people in India. It lets you handle and pay off all your credit card dues. It gives exclusive discounts on our credit card and tracks the expenses as well.

An interesting point to note here! CRED entered the Unicorn Club in April 2021 with a valuation of $2.2 Billion that was accompanied by a funding round led by Falcon Edge Capital and Coatue Management LLP for $215 Million. Achieving this status in just two and odd years is a sign of CRED's amazing business model.

What is CRED and How does it work?
Features of CRED app
Is CRED App Safe?
Business Model of CRED
CRED Revenue Model - How does CRED make money?

What is CRED and How does it work?

CRED provides the ability to reduce the pressure of handling multiple credit cards and to help pay credit card payments on a timely basis. Users earn points that can be used towards prompt purchases through the CRED application. In 2015, Kunal Shah sold Freecharge and was looking for an alternative concept to change people's lives.

Kunal Shah, founder of CRED
Kunal Shah, founder of CRED

During his study, he found so many automatic products in developed countries such as supermarkets with no cashiers, gas stations without an attendant, etc. but there's no such reputable mechanism that will allow people with zero extra charges to pay the correct amount of credit card bills in due time. It is best for creditworthy people. But the question was why should people pay their bills of credit cards through their APP, and so the idea came to reward the loyal credit card users who paid their bills on time. CRED was introduced in April 2018 with this plan to draw consumers.

Hidden Charges
Hidden Charges

Download and type your cell phone number in the CRED App. The app checks the cards connected to the registered phone number until the account has been configured. If the credit score is greater than 750, users would be allowed to use the exclusive app. Otherwise, they have been sent to the waitlist. When access is open, CRED apps will have access to the mail identification to read and scan the credit card receipts, such as due dates, the services' statements, etc.

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Features of CRED app

  • CRED provides you with one location to handle your entire credit card range.
  • Whenever you pay your credit card bills, certain CRED coins are issued that you can use to earn discounts on different CRED partner products.
  • It analyses the overall expenses, secret costs, and records loan caps and advises you of all this so that extra charges can be avoided.
  • CRED security is the app's functionality that reads the email statements with details on balance, due date, bank costs, and bifurcation of expenditures.
  • The smart statement feature allows consumers to simplify costs by reviewing the CREDit card statements.

Sandeep Tandon | Co-founder of FreeCharge | Managing Director at Tandon Group |
Sandeep Tandon is a Technology Entrepreneur, Investor and a Mentor. He is the Co-founder at one of India’s first mobile payment platform, FreeCharge[/freecharge-best-deals-cashbacks/]. He also serves as the Managing Director of Tandon Group, a technology catalyst that owns numerous businesses by …

Is CRED App Safe?

CRED App is RBI Approved. Hence, it is safe.

CRED Is safe and RBI approved
RBI approved

As we have mentioned before, CRED is developed by Kunal Shah who has already created Freecharge for over two years. CRED has millions of users. Therefore, CRED seems to be entirely authentic and secure to use. As a member of CRED, you must authorize the application to check RBI info and you are well-advised to take advantage of your credit card value is more than 750.

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Business Model of CRED

Any Businessman wants to know how top firms like CRED function and whether it produces profits and benefits in the air. The 3 pillars of CRED's business model - Customers who pay credit card bills, The CRED app and the Businesses who provide offers on the app.

Here is the Business Model of CRED:

  • In order to access CRED programs, a credit score of more than 750 must be obtained. This application also allows users to share certain data such as credit card numbers, access to emails to track users' expenses and due amounts, credit score, and how they invest their money. You collect CRED coins, so You will use them for the prizes, while you begin paying the bills.
  • In order to make these deals available, CRED must include companies and create connections with them. The exposure they achieve in the CRED application helps young and older companies when the customer pool is customers from diverse backgrounds.
  • People already use payment applications to pay their credit card bills or directly from their bank. CRED allows them more advantages to carry out the same credit card payments operation across the app. When more people take advantage of CRED, they share CRED with more friends and relatives.
  • The CRED software has a good user interface and UX style. Users will sign up for the app to see the available credit card bill deals.

CRED Revenue Model - How does CRED make money?

CRED has no single best source of revenue. CRED has a varied product/service span - Rentpay, CRED Stash, Store, Credit Card Payments and CRED Pay.

  • CRED Pay was developed in partnership with Razorpay and Visa. It provides brands with a D2C channel, by offering them an instant payment experience on their platforms.
  • CRED makes money by charging a listing fee for products and offers that businesses wish to display to the app users.
  • CRED's RentPay allows the tenants to pay monthly rents using the credit card, where the amount is transferred to the landlord's bank account directly. The main advantage that lies here is that the app helps users get an interest-free credit period on rent and also let them earn reward points on their credit cards. CRED will charge users a transaction fee of 1% - 1.5% depending on the user's credit card network.
  • CRED Store is a member-exclusive selection of products and experiences at special prices. Every time you pay your credit card bills on CRED, you receive CRED coins. These coins can be used to win exclusive rewards or get special access to curated products and experiences
  • CRED Stash is a digital lending platform which makes a personal credit line available to users in a completely online manner. Here the Registration/ Subscription Charges is Nil. However the bank charges interest on money borrowed which is displayed on the app while availing the loan.

At present, CRED doesn't have any distinct revenue source and needs to increase its consumer base as it is its one of the biggest intangible assets. There could be various plausible ways in the future if we focus on the potential income streams of CRED.

Data monetization is the first possible source. They will not sell data to third parties, but they will use data to optimize and personalize the use of the user interface, as described in the CRED privacy policy. The privacy policy can also be updated quickly in compliance with product fitness. As we all know today in the world, data is just as important as oil and can be taken advantage of in many forms. Also, CRED points can be redeemed with multiple rewards form its different partners. They can also charge from their partners by making strategic deals.


CRED partners to view incentives on the application to firms. In exchange, clients of these firms become the consumers who redeem CRED coins for deals. With more credit card customers entering the app, they can gain more tailored financial details. Financial institutions such as banks and credit card firms profit from such a profound strategy with reduced consumer transaction costs.

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Who's CRED's founder?

The founder of CRED is Kunal Shah.

How does CRED make money?

CRED has no single best source of revenue. CRED has a varied product/service span - Rentpay, CRED Stash, Store, Credit Card Payments and CRED Pay. For instance, CRED's Rentpay charge users a transaction fee of 1% - 1.5% depending on the user's credit card network.

How to get in touch with CRED?

The official contact number is not available. Users should send an e-mail to

Does CRED have to be free?

For all holders of credit cards, CRED is an entirely free app for paying bills. You are compensated with cashback and certificates from various firms in exchange for the payment of bills.

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