Seemingly since its inception, credit card payment business CRED has been subject to heated debates on the company’s business model or seeming lack thereof.
“What is CRED’s business model? How will it make money?” has been the questions du jour in startup circles for a while.
But those may be the wrong questions to ask.
The actual question should be, “Why is CRED valued as highly as it is?”
Even before starting the company, CRED founder Kunal Shah raised a seed round of US$25 million. He then followed it up with multiple funding rounds totalling more than US$200 million, with the last publicly disclosed round of US$80 million reported in January 2021 at a valuation of US$800 million.