There’s a substantial pipeline of young startups in India today. From Softbank backed startups like Oyo to startups like Cred.Club, one can see thriving systems in India that are tackling every single industry.
Cred.club is an exciting startup because it tackles the problem of the under-banked in a specific way, through credit. The founders of the company realized that many people in India have the opportunity to build up their credit scores and enhance their financial portfolio.
The CRED Offering
CRED solves the problem by offering a single product that incentivizes users to connect to its platform and make their credit card bill payments on time. But there’s a catch. The product is positioned as a “members-only club.” CRED members are incentivized to join, link their accounts, and get rewarded with fantastic offers and excellent experiences for making their credit card payments in an orderly fashion.
As such, CRED provides individuals with a way to continue to improve and monitor their credit scores regularly. Those that substantially increase their Experian or CRIF scores by paying via the CRED application have the opportunity to take advantage of exclusive deals and offers.
The application provides nifty tools such as providing information on the overall credit card spend and global management of credit.
One compelling aspect of CRED is the fact that it comes with an artificial intelligence component that absorbs information related to payments made, due dates, consumption behaviors, and other credit card utilization details.
The company provides rewards based on the member’s interaction with the application. Rewards can range from events, access to unique offerings from brands, and valuable experiences.
CRED members can apply for membership by completing their form, which requires standard information like full name, India based local mobile number, and other pertinent details on the application.
The application reviews your credit score by running your information through agencies like the CIBIL, Experian, and CRIF. Once you reach or exceed their eligibility criteria, you become a member of the CRED Club. Once a member, access the platform, build your credit score, and start to get access to rewards.
Enjoy features like the tracking and elimination of unnecessary charges and more.
According to The Economic Times, users receive cred coins (equivalent to one Rupee) that may be redeemed in the participating partner network.
The company has raised more than $170.0 million, with its latest round conducted in July. Investors include Gemini Investments, Ribbit Capital, Tiger Global Management, and Sequoia Capital.
The Why for CRED
India is still on-boarding its citizens onto different financial services and banking the unbanked in more ways than one. When we think about banking, we might think about savings and checking accounts and might think about credit facilities later on.
While credit is a crucial component of good financial health, it might be an afterthought in the United States. But with a reasonably large population, India is still in the process of adding more people to the financial industry in a streamlined manner. Recent research shows that more than 35.24 million people use credit cards in India, this, in a country that has 1.339 billion people.
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