CRED Business Model: What makes cred so unique & popular?

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The most interesting fact about the CRED business model is that it entered the unicorn club just two years of its launching. In business terms, Unicorn club is a group of startups that values at over $1 billion. As of April 2021 cred has a net worth of 2.2 billion $. This reflects the success of the Cred business model & the hard work done by Kunal Shah, the founder of CRED. CRED business model has attracted giant investors like Falcon Edge Capital and Coatue Management LLP who have funded the company worth $215 Million.

CRED Interesting Features & How the CRED app works?

Suppose you are a business owner or someone having a very busy lifestyle and you own multiple credit cards, in such cases it’s quite usual to forget bill payments on time. Here CRED comes into action, it can schedule & manage your credit card payments with zero processing fees & any commissions.

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Moreover, cred provides reward points at all transactions done in due time. CRED allows only those people to join their community who have a credit score of more than 750. To use the CRED app just :

  • Download Cred app from play store or IOS app store
  • Enter your associated mobile number with credit cards
  • Configure the mobile number and payment types
  • If your credit score is greater than 750 points you will be ready to go
  • If credit score is less than 750 points your application will go into waitlist and will be live only when copmany changes the criteria
  • CRED app will have access to the mail identification to read and scan the credit card receipts, such as due dates, the services’ statements, etc to schedule payments and execute.
  • CRED can manage your all credit cards & transactions at single place
  • Aftery every successful transaction on your credit card bills, you will get certain CRED coins to earn discounts on different CRED partner products.
  • Cred will analyse your overall expenses, miscellaneous costs, and records loan caps & assist you of all this to avoid extra charges.
  • CRED security feature reads email statements with details on balance, due date, bank costs & schedule payments accordingly.
  • The smart statement feature helps to simplify costs by reviewing CREDit card statements.

Many people have doubts about security of this app, the good thing is that CRED is RBI approved app so it’s safe to use. Also it has a huge customer base and is developed by former Freecharge owner Kunal shah that had no security breach reports. Theirfore CRED app is authentic and very safe to use. All the transactions are monitored by RBI thus it’s good & have a lot of benifits, you should start using CRED if you have credit score more than 750 .

Cred Business model

After it’s huge success and such investments everyone want’s to understand Cred’s business model, whether it’s a profit making company or not. The main sources of creds income are the businesses who list offers on the CRED app, The CRED app itself and the card holders who pay bills through the app.

Business model :

How cred makes profit
Cred business Model – How cred earns money
  • As already discussed the criteria for accessing CRED programs is that you must have a credit score of more than 750 . CRED requires to allow user to share certain informations such as credit card numbers, emails to track users’ expenses and dues, credit score, and how you invest your money. CRED rewards CRED coins as rewards whenever you pay bills through CRED on time, these rewards can be redeemed on deals with certain companies & brands.
  • To make the deals happen, CRED has to include sponsored companies and create deals with them.
  • As the customers who use CRED are usually credit card users and thus they are potential customers. This fact attracts companies to partner with CRED.
  • Customers use several payment applications to pay their credit card bills from their bank. But CRED provides more advantages to carrying out the same transactions across the app. When more people use CRED, they share CRED across their network.
  • CRED application has an attractive & user-friendly user interface thus it will attract people to use the app and execute deals

How does CRED earn money ?? The revenue model of CRED

  • Cred charges products or companies that list their products or services on the CRED application to show them to CRED users.
  • CRED has a quality audience that belongs to a good pay scale, thus for displaying them, ads CRED charges decent money to advertisers.
  • CRED charges processing fees of 1% to 1.5% on several transactions such as CRED’s Rentpay and several types of other transactions.
  • CRED store is another source of CRED revenue.
  • Currently, CRED doesn’t have any clear-cut earning source and its focus is to increase its consumer base as it is one of the biggest underrated assets. There could be a number of ways in the future if we focus on the potential income streams of CRED.
  • Selling customer data / Data monetization is one of the possible sources that CRED can use in the future as most companies do. But CRED will not sell data to third parties, but they will use data to optimize and personalize the use of the user interface, as mentioned in CRED’s privacy policy. The privacy policy can be updated in accordance with product requirements.
  • It’s a well-known fact that today in the world, data to companies is just as important as oxygen to patients and can be taken advantage of in many forms. Even, CRED points can be redeemed with multiple rewards from its partners. CRED can charge from these companies by making strategic deals.
Cred business model explained

Why people think that Cred is a loss making money ?

As per company’s advertisements on multiple platforms,company had made mindset of people as they are giving free rewards without any extra charges for paying credit card bills & using other credit card related services. People are not aware about various sources of income through Cred’s unique business model. That makes people to think CRED is a loss making company.

How to use cred app ?

It’s very easy & simple to onboard on CRED. The simplest process to signup on CRED includes:

  • Download Cred app from playstore
  • Create account with your registered mobile number in bank.
  • Fill up the welcome form & enetre your credentials
  • Link your Credit cards with the account & check your free rewards.

CRED Business Model Main features & services

The main features of CRED that make it so popular & unique includes :

Cred Rentpay : Wow! its amazing and for the first time in india, now you can pay your home rent & schedule it’s autopayment through your credit card.

CRED Cash : It’s kind of reward that CRED provides on a successful transaction

CRED Pay : It’s own payment platform that offers various benifits on selected platforms,again it’s very unique & easy to use.

CRED Store : Cred store has integrated 2000+ brands in their store. You can shop many kinds of brands & e-commerce websites on this platform

CRED Travel Store : Cred travel store is again an amazing concept,it provides a lot of benifits including buy now & travel later. It offers premium benifits on top teir destinations, hotels & palaces.

Is CRED a loss-making company?

Not at all, since they offer charges free transactions it doesn’t mean they are loss making company. CRED has different sources of earnings that are mentioned in the above article including transaction charges on several transactions, CRED stores, etc.

Who is the founder of the CRED business model?

Kunal Shah, former free charge founder.

Is CRED totally free?

No, maximum services of CRED business model are free but it charges for some types of transactions like CRED Rentpay

Is CRED business model privately funded?

CRED business model has attracted giant investors like Falcon Edge Capital and Coatue Management LLP who have funded the company worth $215 Million.

Is CRED secure to use?

As CRED is an RBI-approved application, thus it is secure to use.


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