CRED is facing a catch-22 situation

/ Business, Cash, Catch-22, CRED, Credit Cards, Downturn, Financial Services, Fintech, Fundraising, India, Kunal Shah, Lending, Loans, Marketplace, Peak XV Partners, Profitability, Rent Pay, Revenue, Tiger Global, Valuation

CRED is facing a catch-22 situation. The platform, founded by Kunal Shah, spent heavily on growth and acquiring affluent users. Despite substantial revenue growth in FY25 (₹1,473 crore), the company is yet to turn a profit. Its main revenue driver is the loans business (about 85% of FY25 revenue), but the growth rate of loan distribution has suffered a downturn. Analysts suggest CRED may not have enough cash left to build another vertical or sustain its current high valuation without significant fundraising.

Published by: The Morning Context
Read full story here: Main Article

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