Kunal Shah-led CRED is testing a new feature allowing users to redeem CRED Coins for offline and online purchases. Previously limited to in-app transactions, this initiative aims to enhance user engagement and diversify redemption options.
INC42 exclusively reported this news earlier.
Key Details of the Pilot
- New Redemption Options: Users can now utilize CRED Coins at select online merchants and offline outlets.
- How It Works: Members can scan a QR code at participating offline stores to verify and redeem coins for discounts.
- Online Benefits: Coins can also be used to purchase memberships like Zepto Pass and to earn cashback or vouchers with brands like Urban Company and ixigo.
- Current Status: The pilot is live for a select group of users, with offline stores launching in Bengaluru before a nationwide rollout.
Expansion of Services
The pilot aligns with CRED’s broader strategy of positioning itself as a super app:
- Insurance Services: Partnered with Go Digit, ICICI Lombard, and Zurich Kotak to offer insurance.
- CRED Money: A tool providing unified bank balance views, recurring payment reminders, and spend analysis.
- Personal Loans: Collaboration with NBFC L&T Finance for unsecured loans.
Financial Performance
- Revenue Growth: Operating revenue rose 71% in FY24, reaching ₹2,397 crore.
- Reduced Losses: Operating losses declined 41%, down to ₹609 crore from ₹1,024 crore in FY23.
- Funding and Valuation: Backed by prominent investors, CRED is valued at $6.4 billion and has raised over $800 million in funding.
Competitive Landscape
CRED’s move comes amid increasing competition in the UPI space. In October, Sachin Bansal-led Navi overtook CRED to become the fourth-largest UPI player. The new feature could help CRED attract users, increase UPI transactions, and solidify its market position.
