CRED, a fintech platform which rewards its users for paying their credit card bills has decided to expand its offerings. The startup has announced the launch of its first investment-focused product, CRED Mint.
The product will enable users to earn interest on their money by lending to other high-trust members. Users can invest anywhere from INR 1-10 lakhs at an interest rate of 9%, and loans will be lent at a rate of 12-13%. CRED Mint will be launched in partnership with LiquiLoans, an RBI-registered P2P NBFC.
“While we were studying user behavior on our platform, we realized that many of our members have lakhs in savings lying idle in their bank account, accruing interest rates which don’t even beat inflation,” said Shah. “This is an erosion of wealth and as a community of high trust individuals we felt that P2P lending offers a low-risk investment opportunity for a Cred member investing in another.”
Founded by Kunal Shah in 2018, CRED has been a key player in the payment sector. Shah claims that about 25-30% of all credit card bill payments in India happen through the platform. The company has raised about $471 million to date from marquee investors like Dragoneer Investment Group, Tiger Global Management, Sofina, DST Global and more.
Shah, who previously founded and sold Freecharge, is also one of the most active angel investors. His investments include lender BharatPe, edtech firm Unacademy, Razorpay, among others.