Kunal Shah’s Cred adds more funding in private placement, equity from 23 investors; takes Series A round to Rs 177 crore

By: |
Published: April 22, 2019 6:06:32 PM

The current round is raised from Alibaba-backed Ganesh Ventures, former PayU India CEO Amrish Rau, Truecaller cofounder Alan Mamedi, Swiggy cofounder Sri Harsha Majety, former LinkedIn India head Akshay Kothari, CureFit Mukesh Bansal, True North partner Haresh Chawla etc.

This brings Cred?s Series A financing round to a little more than Rs 177 crore with overall 28 investors.

Credit card payment reward app Cred has additional Rs 23.8 crore from 23 investors including venture capital firms, high-net-worth individuals, internet entrepreneurs, family trust, etc., in its ongoing Series A round that began in September last year.

This brings the total tally in Cred’s Series A financing round to a little more than Rs 177 crore with overall 28 investors, in a round in which two firms, Ribbit Capital and Sequoia Capital contributed roughly 60 per cent of the capital, Paper.vc founder Vivek Durai told Financial Express Online.

Cred, which began its Series A round with $134 crore, raised a further round of over $17.7 crore from Russian VC fund Ru-Net in October last year followed by Rs 7.1 crore raised from Hong Kong-based MVision in November, showed regulatory filing sourced by business signals platform Paper.vc.

For the current round, Rs 5.6 crore was raised in equity exchange from seven investors including Alibaba-backed Chinese fund Ganesh Ventures, former PayU India CEO Amrish Rau, FreeCharge cofounders Kunal Shah (founder at Cred) and Sandeep Tandon’s fund Whiteboard Capital, Truecaller cofounder Alan Mamedi etc. Swiggy’s Sri Harsha Majety separately invested Rs 71 lakh.

Also read: How FreeCharge founder’s latest venture raking up $300 million valuation in just 5 months of launch

The remaining Rs 17.5 crore was raised by Cred in private placement offer to 22 investors (including above seven investors) such as Valiant Mauritius Partners FDI, VH Capital, Rainmatter Capital, PE firm True North partner Haresh Chawla, former LinkedIn India head Akshay Kothari, CureFit Mukesh Bansal etc, showed regulatory filings sourced by business signals platform Paper.vc.

The company is also reportedly in discussions with investors to raise $100 million.

“It is safe to say that Cred’s initial rounds have been extremely successful. But one could question the wisdom of inviting such a diverse group of entities and people to own a slice of your privately held company at such an early juncture. It would seem as if Cred is using its own cap table as a growth vehicle of sorts by getting buy-ins from key startup founders,” Durai said.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition