Cred initiates ESOP buyback value $1.2 million as a part of Series C fundraise

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The collection C fundraising was led by its current investor DST Global, together with Sequoia Capital, Ribbit Capital, Tiger Global, and General Catalyst.

Cred has raised $81 million in its Series C spherical at a post-money valuation of $806 million. Existing Cred investor DST Global led the spherical, together with Sequoia Capital, Ribbit Capital, Tiger Global, and General Catalyst. In addition, Sofina, Coatue and Satyan Gajwani of Times Internet additionally invested on this spherical. Existing and former staff have liquidated their ESOPs, collectively value $1.2 million (Rs 9 crore). The ESOP buyback was accomplished on 1 January 2021.

This is the primary ESOP liquidity program initiated by Cred, simply two years into its operations. Employees who maintain vested shares have been eligible to promote as much as 50 p.c of their vested ESOP shares within the firm.

“As we raise funds to support our next phase of growth, it’s important to acknowledge the role that employees have played in our success. We are committed to enabling wealth-creation opportunities for them and have allocated 10 percent of our capital allocated for ESOPs even at the Series C stage. I am grateful for their conviction, as well as that of our investors, and am focused on creating value for them as the product and business evolves,” says Kunal Shah, Founder, Cred.

This comes weeks after Cred raised over $80 million in series B funding in December. The funding was led by DST Global, Ribbit Capital, Sequoia Capital, and Tiger Global.

Cred processes 20 p.c of all bank card invoice funds in India. Over 35 p.c of premium credit score cardholders in India are on Cred, with members spending two occasions the typical bank card consumer in India.

Launched in 2018, Cred is an app that helps customers pay and handle their bank card. It gives rewards and incentives linked to the bank card cost. It is for individuals who have a minimal credit score rating of 750 or above.

CEO of Cred, Kunal Shah was additionally the co-founder of Freecharge which is presently owned by personal lender Axis Bank.

Last 12 months, Cred additionally introduced an official partnership with the Indian Premier League (IPL). In the early phases of the pandemic, Cred introduced a brand new function referred to as Cred RentPay the place customers might pay their hire utilizing their bank cards. Another function introduced was Cred Stash, a simple and digital means of acquiring credit score in India.

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