CRED is facing a catch-22 situation
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.
