Fintech unicorn CRED, founded by Kunal Shah in 2018, has turned profitable for the first time in FY2025, marking a major milestone in India’s digital finance sector. Known for rewarding users for timely credit card bill payments, CRED has evolved into a multi-service financial ecosystem — spanning lending, commerce, and wealth management.
The company reported a 70% year-on-year surge in operating revenue, crossing the ₹2,000 crore mark, while maintaining a lean expense structure that helped it achieve profitability. Backed by marquee investors such as Sequoia Capital, Tiger Global, and Falcon Edge, CRED’s current valuation stands at $6.5 billion, consolidating its position among India’s most valuable fintech startups.
Diversifying Beyond Credit Payments
What began as an exclusive credit card payment rewards platform has now transformed into a full-stack financial lifestyle app. In 2025, CRED expanded its footprint into merchant lending, investment products, and insurance integration, enabling its 16 million+ members to manage finances in one place.
The platform’s CRED Mint and CRED Cash products have gained traction among salaried professionals, while its CRED Pay feature has emerged as a popular checkout option across leading Indian e-commerce websites.
“CRED’s next phase is about trust and financial empowerment,” said Kunal Shah, Founder and CEO. “Our profitability is not the end — it’s a reflection of how responsible growth can build sustainable value in fintech.”
Technology and User Trust Drive Growth
CRED’s success continues to hinge on two factors: user experience and data security. The app’s AI-based credit scoring model and risk assessment engine now process over 500 million transactions annually, helping partner banks and NBFCs offer pre-approved loans and personalized offers.
Its commitment to privacy and zero spam has built loyalty among premium users, with the average transaction size on CRED exceeding ₹15,000, significantly higher than other fintech platforms.
In 2025, the company also launched CRED Protect 2.0, an AI-powered fraud detection feature that proactively flags unusual activity on linked credit accounts — a move aligned with India’s tightening digital payment security norms.
Commerce and Brand Collaborations
CRED’s commerce vertical, which curates limited-time brand experiences and rewards, has become a strategic revenue driver. Collaborations with over 1,200 premium brands — from Apple and Dyson to Indian startups like Boat and Wakefit — have strengthened CRED’s image as a high-trust lifestyle platform.
The company’s festive sales and “CRED Store” events have shown impressive user engagement, with more than 25% repeat purchase rates.
Analysts attribute CRED’s profitability to this diversified monetization approach. “CRED moved from rewards to relevance,” said Ritika Menon, fintech analyst at PwC India. “By integrating commerce, lending, and payments into one app, it’s building a strong moat in the premium financial segment.”
Profitability and the Road Ahead
CRED’s FY25 profit marks a turning point not just for the company but for India’s maturing fintech ecosystem. The startup, once known for aggressive marketing, has recalibrated towards operational efficiency and sustainable revenue channels.
With profitability achieved, CRED plans to expand its merchant network and explore cross-border payment partnerships, tapping into the growing NRI market and global fintech collaborations.
Kunal Shah also hinted at exploring IPO readiness over the next two years, once growth stabilizes.
Key Lesson: Sustainable fintech growth comes from building trust, diversifying smartly, and prioritizing user experience over rapid expansion.
Last Updated on: Wednesday, October 29, 2025 2:28 pm by BUSINESS SAGA TEAM | Published by: BUSINESS SAGA TEAM on Wednesday, October 29, 2025 2:28 pm | News Categories: Startup News
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