How CRED Became a Unicorn in Just 3 Years: A Fintech Success Story
In just three years, the Bangalore-based financial business CRED achieved unicorn status. Founded by Kunal Shah, it provides a safe and attractive platform that has completely changed the way consumers handle their credit card payments. This blog covers the factors that contributed to the rapid growth and the reasons why its success is important to companies that produce SaaS, online, mobile, and UI/UX designs.
Table of Contents
What is CRED App?
CRED is a financial services startup that provides credit products to people in India. Founded by Kunal Shah in 2018, the company aims to make credit more affordable and easier to access in India.
The company launched with great success, securing significant seed funding from Sequoia India and other investors in just six weeks. Over the next two years, the company grew quickly, raising $90 million in Series A and B funding rounds.
What services does CRED provide?
The Unicorn Startup began by offering only credit card payment services, but it is now branching out into other financial areas. Approximately 7.5 million people use the app, and the figure is rising. Let’s review the services the app provides.
- Credit Card Bill Payment: Users may pay their credit card bills with the app, and in return, they will get rewards in the form of coins that they can redeem for a range of offers and discounts.
- Credit Score Monitoring: Provides users with access to their credit scores and complete credit reports, helping them monitor and improve their credit health.
- In house Store: A carefully chosen online store where customers can get deals on goods and services by using their coins.
- Rewards & Cash Back: Coins can be used for exclusive rewards, discounts, and cashback benefits at various partner businesses in industries including travel, retail, dining, and entertainment.
- Rent Payments: Consumers who pay their rent with credit cards every month could reap advantages from the transaction.
- Personal Loans: Consumers who pay their rent with credit cards every month can reap advantages from the transaction.
- Utility Payments: Users can pay various utility bills, such as mobile phones, electricity, and water, and get rewarded for doing so.
Identifying Market Gaps
Identifying the major trouble areas in the credit card payment ecosystem marked the start of CRED’s journey. It developed a strong value proposition by addressing problems such as inconsistent payment procedures and a lack of rewards. Fully understanding and addressing these trouble areas was essential to setting them apart from other financial services.
Innovative Business Model of CRED
Giving users rewards for using the app to pay their credit card bills is the main component of CRED’s unique business strategy. This strategy promotes client loyalty alongside prompt payment incentives. The platform’s seamless integration with other financial services allows it to serve as a one-stop shop for credit card management.
Aggressive Marketing and Brand Building
CRED’s success can be largely attributed to its marketing approach. The company has grown into a recognizable and powerful brand through creative advertising at high-profile events such as the Indian Premier League, celebrity endorsements, and a strong social media presence. Imaginative advertisements, including those featuring cricket icon Kapil Dev in unexpected situations, and the use of meme marketing, have greatly increased user engagement and brand recognition.
Strong Leadership and Vision
The experience and vision of the founder, Kunal Shah, have been pivotal in guiding the company toward success. His prior business endeavors and in-depth knowledge of the fintech industry helped him lead CRED through its early challenges and set it up for rapid growth. Strong leadership and a clear vision are necessary for any business aiming for rapid development.
We want to focus on the others, the ones who pay taxes. Nobody has been solving their problems.” — Kunal Shah
Securing Substantial Funding
Prominent investors including Coatue Management, Falcon Edge Capital, and Tiger Global have successfully contributed substantial capital to CRED. These investments have not only provided the financial support needed to scale operations but also helped the company gain respect from future customers and partners.
UI/UX Excellence
The role of UI/UX design in CRED’s success cannot be overstated. The app’s attractive design, simple navigation, and user-friendly interface make financial management less intimidating and more engaging. This emphasis on excellent UI/UX design highlights the need for developing apps that are both functional and pleasant to use.
Relevance to UI/UX and SaaS Development
The journey of CRED holds special significance for businesses operating in the domains of online, mobile, SaaS, and UI/UX design. It draws attention to how important it is to identify customer pain points, develop creative business strategies, and create outstanding UI/UX design in order to create a successful digital product. Similar approaches, such rewarding user behavior, guaranteeing a smooth user experience, and upholding strong security measures, may help SaaS businesses achieve significant growth and customer loyalty.
Who are the Brand Partners?
CRED has successfully secured a number of popular companies as partners, offering customers a variety of benefits including gift cards. Some of the top brand partners are:
- Jio Saavan
- AJIO
- TATA CLIQ
- The Lalit
- Samsung
- Puma
- Dineout
- Myntra
- Cure Fit
- Ethos
Wrapping Up
CRED’s three-year journey to unicorn status is a testament to the power of innovative ideas, effective marketing, and excellent user experience design. By identifying and fulfilling market needs, employing smart marketing strategies, and maintaining a superior user experience, CRED has set a standard for fintech companies and beyond. Businesses in online, mobile, SaaS, and UI/UX development can learn a lot from CRED’s experience to enhance their own offerings and achieve similar success.
FAQ’s
Is CRED just for handling credit cards?
CRED membership is usually based on your credit score. If you have a good credit history, you can join and enjoy the platform’s services.
What
makes CRED different from other fintech platforms?
CRED stands out by offering a high-end experience, special rewards, and a community of users with high credit scores, making it unique.
How secure is CRED for managing credit card information?
CRED uses strong security measures to keep user data safe and provide a secure way to manage credit cards.
Does it cost money to use CRED’s premium services?
While basic services are free, CRED might charge for premium features. Users are informed of any fees in advance.
How does CRED help people understand finances better?
CRED provides users with insights into their credit scores and encourages responsible credit card usage, contributing to financial awareness and literacy.
How does CRED’s rewards program work?
CRED users earn points for timely credit card payments, which can be redeemed for various rewards, including discounts, vouchers, and exclusive offers.
