Kunal Shah’s Cred Raises $120 Mn at Eye-popping Valuation of $ 450 Mn

According to Cred’s latest regulatory filings, existing investors Ribbit Capital, Gemini Investments and Sequoia Capital led the round. Tiger Global …

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Kunal Shah’s Cred has raised $120 million (nearly Rs 861.39 crores) in its ongoing series B round. Kunal Shah has confirmed the news to the media but refused to divulge any financial details about the deal.

kunal-Shah

kunal Shah – Founder & CEO of Cred

According to Cred’s latest regulatory filings, existing investors Ribbit Capital, Gemini Investments and Sequoia Capital led the round. Tiger Global, Hillhouse Capital, General Catalyst, Greenoaks Capital and Dragoneer also participated in the round. The latest funding round has propelled the Bengaluru based startup’s market valuation to almost $450 Mn.

Shah told Yourstory that the funds will be used for international expansion and create new products in collaboration with financial institutions.

Cred, which is barely nine months old, aims to make people responsible with regards to their credit card payments. It does this by incentivizing the members for paying their credit card payments on time. These incentives mainly constitute of gems and coins that can be redeemed on on-line shopping websites, movie theaters and other recreational places.

The company has already tied up with BookMyShow, Urban Ladder, Airbnb and CureFit for implementing its incentive schemes. Prominent banks like HDFC, ICICI, Kotak and Axis have also collaborated with the company.

Cred is currently members only app. Despite the fact that India has only 50 Mn credit card users, Shah is optimistic that his company will be reaping handsome profit.

Shah must be deriving lot of confidence and inspiration from its past track record. He was the founder and CEO of Fintech startup FreeCharge, which was acquired by Snapdeal for whopping $450 Mn in 2015. This deal is still considered as one of the biggest acquisition deals in India’s startup ecosystem.

Although post-acquisition FreeCharge floundered after failing to compete with Alibaba backed Paytm, the deal certainly made Shah a household name and one of the poster boys of India’s startup ecosystem.

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Fintech startup Cred closes $120m funding led by Ribbit Capital, others

… Gemini Investments, a personal investment vehicle of Yuri Milner’s DST Global, and Sequoia Capital, according to a report by The Economic Times.

Cred, the second venture of FreeCharge co-founder Kunal Shah, has finalised a $120 million funding round, led by its existing investors Ribbit Capital, Gemini Investments, a personal investment vehicle of Yuri Milner’s DST Global, and Sequoia Capital, according to a report by The Economic Times.

The round saw the participation of new investors such as Tiger Global, Hillhouse Capital, General Catalyst, Greenoaks Capital and Dragoneer, the report further stated, indicating that the valuation of the startup currently stands at $450 million.

Set up in 2018, Cred (headquartered in Bangalore) incentivizes credit card payments with reward points. It is a platform that allows credit card users to manage multiple cards along with an analysis of their credit score.

The company had garnered a valuation of $75 million when it first raised funding last year.

The corpus raised in the current round will help Cred expand its operations into the international market, besides strengthening its merchant ecosystem.

It is understood that the company is currently in talks with a slew of banks to clinch partnerships to help them disburse personal loans through credit cards.

Currently, there are about 50 million credit cards in the country, according to data estimates of the Reserve Bank of India. Of this, the total number of unique credit card users stand at 20-25 million.

Even as the startup is in new, investors are increasingly evincing interest in it. This is primarily because Shah has a proven track-record of selling FreeCharge to Kunal-Bahl owned e-commerce firm Snapdeal in 2015, which in turn sold to Axis Bank in 2017. Besides, the sector that the startup operates in is highly lucrative.

Recently, California-headquartered microloan startup Tala raised $110 million in a Series D round led by RPS Ventures to enter the burgeoning Indian digital lending space.

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As Ebay INC (EBAY) Market Valuation Rose, Baupost Group LLC Boosted Position

Investors sentiment increased to 1.12 in 2019 Q1. Its up 0.47, from 0.65 in 2018Q4. It increased, as 44 investors sold EBAY shares while 230 reduced …

eBay Inc. (NASDAQ:EBAY) LogoInvestors sentiment increased to 1.12 in 2019 Q1. Its up 0.47, from 0.65 in 2018Q4. It increased, as 44 investors sold EBAY shares while 230 reduced holdings. 119 funds opened positions while 189 raised stakes. 711.61 million shares or 3.89% less from 740.38 million shares in 2018Q4 were reported. Wright Investors Ser Inc stated it has 0.09% in eBay Inc. (NASDAQ:EBAY). Hsbc Hldg Plc holds 0.05% of its portfolio in eBay Inc. (NASDAQ:EBAY) for 783,354 shares. Rice Hall James Limited Liability Corp accumulated 48,418 shares or 0.06% of the stock. Windward Capital Mgmt Ca holds 0.81% or 170,944 shares. First Manhattan holds 0.03% or 144,992 shares in its portfolio. Tci Wealth holds 0.01% in eBay Inc. (NASDAQ:EBAY) or 543 shares. Commonwealth Savings Bank Of reported 153,122 shares. Adage Cap Partners Group Inc Lc holds 0.1% or 1.08 million shares in its portfolio. Cibc Ww stated it has 107,471 shares or 0.02% of all its holdings. Apg Asset Management Nv has 1.46M shares. The United Kingdom-based Merian Investors (Uk) Limited has invested 1.81% in eBay Inc. (NASDAQ:EBAY). American Research And Management Communication reported 1,100 shares. Charles Schwab Investment invested in 3.69M shares or 0.09% of the stock. Moreover, Umb Natl Bank N A Mo has 0.01% invested in eBay Inc. (NASDAQ:EBAY) for 11,442 shares. Oregon Public Employees Retirement Fund has invested 0.05% in eBay Inc. (NASDAQ:EBAY).

Since August 5, 2019, it had 1 insider buy, and 0 selling transactions for $232,736 activity.

Baupost Group Llc increased its stake in Ebay Inc (EBAY) by 39.46% based on its latest 2019Q1 regulatory filing with the SEC. Baupost Group Llc bought 8.29 million shares as the company’s stock rose 8.97% . The hedge fund held 29.29 million shares of the business services company at the end of 2019Q1, valued at $1.09B, up from 21.00M at the end of the previous reported quarter. Baupost Group Llc who had been investing in Ebay Inc for a number of months, seems to be bullish on the $32.97B market cap company. The stock increased 1.58% or $0.61 during the last trading session, reaching $39.31. About 2.15 million shares traded. eBay Inc. (NASDAQ:EBAY) has risen 22.33% since August 26, 2018 and is uptrending. It has outperformed by 22.33% the S&P500.

More notable recent eBay Inc. (NASDAQ:EBAY) news were published by: 247Wallst.com which released: “Music Industry Calls Out Amazon, eBay for Selling Counterfeit CDs – 24/7 Wall St.” on August 22, 2019, also Nasdaq.com with their article: “I’m More Interested in Buying Uber Stock Than Ever Before – Nasdaq” published on August 09, 2019, Benzinga.com published: “Seller-Focused Initiatives, Delivery Service Give KeyBanc Higher Confidence In eBay’s Earnings – Benzinga” on July 29, 2019. More interesting news about eBay Inc. (NASDAQ:EBAY) were released by: Nasdaq.com and their article: “Noteworthy ETF Outflows: FDN, CRM, NFLX, EBAY – Nasdaq” published on August 20, 2019 as well as Nasdaq.com‘s news article titled: “Alibaba to Expand E-Commerce Presence With Kaola Acquisition – Nasdaq” with publication date: August 19, 2019.

eBay Inc. (NASDAQ:EBAY) Ratings Coverage

Among 14 analysts covering Ebay (NASDAQ:EBAY), 10 have Buy rating, 0 Sell and 4 Hold. Therefore 71% are positive. Ebay has $4900 highest and $34.5000 lowest target. $43.64’s average target is 11.02% above currents $39.31 stock price. Ebay had 20 analyst reports since March 4, 2019 according to SRatingsIntel. Credit Suisse maintained eBay Inc. (NASDAQ:EBAY) on Thursday, July 18 with “Outperform” rating. The firm earned “Outperform” rating on Thursday, July 18 by Raymond James. Deutsche Bank maintained the stock with “Buy” rating in Wednesday, April 24 report. The rating was maintained by KeyBanc Capital Markets with “Overweight” on Monday, July 29. The rating was maintained by Canaccord Genuity with “Hold” on Thursday, July 18. Barclays Capital maintained eBay Inc. (NASDAQ:EBAY) on Monday, March 4 with “Buy” rating. The firm has “Hold” rating by Canaccord Genuity given on Wednesday, April 24. The rating was maintained by DA Davidson on Monday, March 4 with “Buy”. The firm earned “Buy” rating on Tuesday, March 12 by Robert W. Baird. Barclays Capital maintained eBay Inc. (NASDAQ:EBAY) rating on Wednesday, April 24. Barclays Capital has “Overweight” rating and $4900 target.

eBay Inc. (NASDAQ:EBAY) Institutional Positions Chart

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Top tech startup news for today, Monday, August 26, 2019

CrowdStrike launches $20 million Falcon Fund. CrowdStrike, a cybersecurity company that povides cloud-based endpoint protection, has launched a …

Good morning! Below are some of the top tech startup news for today, Monday, August 26, 2019.

Alibaba-backed AI startup Megvii files for Hong Kong IPO. Megvii, a Chinese artificial intelligence startup backed by Alibaba has filed for an initial public offering (IPO) in Hong Kong. Megvii is better know for its facial recognition technology. Late last yearr, Megvii raised $600 million from Alibaba and others for its facial recognition system FacePlusPlus. Founded in 2011 by Qi Yin, Wenbin Tang, and Yang Mu, Megvii is an Artificial Intelligence company specialized in providing enterprises and developers with intelligent solutions and data services, and is dedicated to the mission of “Create machines that can see and think”. Based on its original deep learning system Brain++, Megvii seeks to build AI Engine, a core fundamental technology powering various AI application. It is leveraging on recognition, control, optimization and other algorithms to connect individuals, objects and scenarios, building a product platform of IoT OS.

Sleeper raises $7.3 million to take on Yahoo and ESPN.Sleeper, a new San Francisco-based fantasy football startup is aiming to beat ESPN and Yahoo by catering to women and casual fans. The startup announced it raised $5.3 million in venture capital, bringing its total funding to $7.3 million. Sleeper was founded in 2015 by Ken Wang, Nan Wang, and Weixi Yen, Sleeper is a sports app that everyone can enjoy, not just the diehard sports fan. Sleeper offers well-designed fantasy leagues that any can use.

Pony.ai partners with Toyota to accelerate the development and deployment of autonomous vehicles. Pony.ai is teaming up with Toyota on an autonomous driving pilot to accelerate the development and deployment of autonomous vehicles. Together, the two companies will explore a variety of possibilities to provide safe mobility services for all. In April, Pony.ai tested its robo-taxi program on its employees at its second HQ in Guangzhou, China, with promise for self-driving trucks in the nearest future. At Auto Shanghai 2019, Pony.ai also announced PonyPilot, a test project for a product-ready autonomous driving fleet within a geo-fenced area in Guangzhou, China.

CrowdStrike launches $20 million Falcon Fund.CrowdStrike, a cybersecurity company that provides cloud-based endpoint protection, has launched a $20m early stage investment fund. Started in partnership with Accel, Falcon Fund will focus on seed and Series A investments in startups that are building applications on the CrowdStrike Falcon® platform. The fund will act as a co-investor and strategic partner alongside lead investors looking for innovative startups solving pressing security and IT challenges for customers. Through the CrowdStrike Store, startups and partners can develop new solutions without the need to build or deploy new endpoint agents or invest in expensive platforms for storage and analytics.

Syncsort acquires Pitney Bowes’ Software Solutions business, for $700 million.Syncsort, a leader in Big Iron to Big Data software, acquires Pitney Bowes’ Software Solutions Business, for $700 million to create a leading data management platform. The acquisition brings to Syncsort location intelligence, data enrichment, customer information management and customer engagement solutions that are complementary to its existing portfolio. The combination expands its offerings in data quality software and complements existing Syncsort Trillium products. The deal is expected to close by the end of the calendar year, pending regulatory approvals and other customary closing conditions.

Stylitics secures $15 million in Series B funding for AI-driven outfitting and styling platform for retailers.Stylitics an AI-powered visual merchandising and outfit recommendation platform, today announced it closed a $15 million Series B round of funding to grow its sales and marketing function while fueling the development of new types of shoppable, content-driven e-commerce and in-store experiences for brands, retailers, and publishers. The round, which was led by PeakSpan Capital, with participation from Trestle LP, brings its total funding to $21 million. The startup also partners with major retailers including Ann Taylor, Chico’s, and Macy’s to deliver dynamic look-based outfit content onto e-commerce sites and in-store experiences.


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Kunal Shah’s Cred Is Raising $101 Mn Series B Funding From Ribbit, Tiger Global And Others

The development comes days after Cred raised INR 27.55 Cr ($4 Mn) from Sequoia Capital India. The company said in its filings that the Bridge Series …
Kunal Shah’s Cred Is Raising $101 Mn Series B FundingKunal Shah’s Cred Is Raising $101 Mn Series B Funding

Bengaluru-headquartered credit card bill payment app Cred said it has raised $120 Mn from a bunch of existing and new investors. Inc42noted through company filings that it has floated the offer for INR 730.02 Cr ($101.4 Mn), and the rest $20 Mn, it claims to have already received.

The company’s Ministry of Corporate Affairs filings accessed by Inc42 showed that the company passed a resolution on August 16 to allot 5,34,668 Series B shares to its investors for INR 730.02 Cr. Here’s the breakdown of the investors:

  • Sequoia India is investing INR 117.07 Cr for 85,750 shares
  • Ribbit Capital is investing INR 144.62 Cr for 1,05,929 shares
  • Gemini Investments is investing INR 144.62 Cr for 1,05,929 shares
  • RTP Global Investments is investing INR 10.3 Cr for 7,566 shares
  • Anxa Holding is investing INR 3.44 Cr for 2,522 shares
  • Tiger Global is investing INR 103.30 Cr for 75,664 shares
  • HH DTPL Holdings II Limited is investing INR 103.30 Cr for 75,664 shares
  • DF International Group is investing INR 34.4 Cr for 25,221 shares
  • Greenoaks Capital Opportunities is investing INR 68.87 Cr for 50,443 shares

In a statement, Kunal Shah, founder of Cred said that “funding is not a milestone but the fuel to carry us into our next phase of growth. We wish to make credit cards more accessible, feature rich and deliver more value to our members. Our true success will lie in improvement in quality of life and financial progress of our community.”

The development comes days after Cred raised INR 27.55 Cr ($4 Mn) from Sequoia Capital India. The company said in its filings that the Bridge Series B funds will be used for growth, expansion, marketing and general corporate activities of the company.

The company’s filings showed QED innovation labs, Sequoia and Ribbit have been the major investors across company’s seed and series A round. Cred had raised $30 Mn in its seed funding round and has been reportedly in talks to raise $125 Mn in a fresh funding round at a valuation of $500 Mn.

Cred: A Members-Only App

Launched in 2018 by Kunal Shah, Cred is a members-only app which gives exclusive rewards for paying your credit card bill in a timely manner. Eligible users with good credit scores can use the app to understand and navigate their credit card statements, particularly with regard to hidden charges, and they are rewarded accordingly.

The company has partnered with brands such as Airbnb, Cure.fit, BookMyShow, Urban Ladder, FreshMenu and ixigo among others for rewards, experiences and upgrades every month. The banks associated with Cred include HDFC, ICICI, Kotak, Axis among others.

In the long run, the company plans on building its consumer base through credit card bill payments and rewards and then develop high-end loyalty and offer other services, including insurance.

Shah is a serial entrepreneur who earlier launched ventures such as PaisaBack, a cashback and promotional discount campaign platform for retailers; and FreeCharge, a coupon-based app for mobile recharge. While he shutdown PaisaBack to launch FreeCharge, Kunal Shah sold the latter to Snapdeal in a whopping $450 Mn deal in 2015. Snapdeal then later sold FreeCharge to Axis Bank.

As one of the hottest sectors of the Indian startup ecosystem, fintech has been bringing investor as well as customer attention. According to DataLabs by Inc42, between 2015 and Q1 2019, the total investment in Indian fintech startups was $7.62 Bn with a total deal count of 478.

Update: August 27, 2019 | 12:15 PM

The company confirmed $120 Mn Series B funding from existing and new investors. The story has been updated to include the same.

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