The CRED Enterprise Mannequin – FourWeekMBA

CRED is an Indian fintech firm based in 2018 by Kunal Shah, who was motivated to create the platform to unravel the belief points he believed have been current in Indian finance. Shah wished a create an ecosystem the place credible people may join and the place lenders and different monetary establishments may lend cash to reliable debtors. The CRED app permits shoppers to fulfill a number of bank card repayments on time and earn factors to spend on unique provides in return. In April 2021, the corporate turned one of many quickest startups to attain unicorn standing with a valuation of $2.2 billion

CRED now controls 22% of all bank card transactions in India, with varied different options added in recent times corresponding to P2P lending, eCommerce, and the flexibility to pay different recurring family bills corresponding to hire and utilities.

CRED enterprise mannequin

CRED’s enterprise mannequin is predicated on three key pillars:

  1. Prospects – who pay their bank card and different payments utilizing a single interface that’s extra intuitive and rewarding than paying by way of their financial institution accounts. Prospects will need to have a credit score rating of no less than 750 which will increase the probability invoice funds might be made on time. 
  2. The app – which supplies the interface the place payments may be settled and CRED cash may be earned and redeemed. The app is famend for its elegant UI and UX design with a 4.7 score within the Google Play Retailer. One distinctive characteristic of the app is that it awards cash based mostly on the whole quantity of the invoice that was paid.
  3. Companies – who present prospects with provides in change for elevated visibility amongst their respective goal audiences. Companies additionally compensate CRED to show their provides contained in the app.

Buyer worth proposition

The corporate provides a number of worth propositions to shoppers who obtain the seamless and trendy app. They need to first sign-up by offering their particulars and all of the bank cards they want to handle linked to a cellular phone quantity.

As touched on earlier, there are a number of helpful options throughout the app along with bank card funds. These embrace:

  • CRED Stash – a low-interest line of credit score for short-term debtors that’s backed by IDFC First Financial institution in India.
  • CRED Retailer – the place prospects can spend their CRED cash on over 2000 manufacturers together with Tata, Puma, and Samsung.
  • CRED RentPay – the place prospects can switch their hire direct to the owner’s checking account utilizing a bank card.
  • CRED Mint – a P2P lending facility that matches lenders with further funds with debtors who’re in need of funds.

How does CRED become profitable?

CRED makes cash in just a few major methods.

Itemizing charges 

The primary is itemizing charges that it collects from accomplice manufacturers who record their services contained in the app. This itemizing charge shouldn’t be in contrast to the charge eCommerce websites corresponding to Amazon cost retailers to show their merchandise.


Every time a consumer redeems their factors for such a proposal, CRED additionally collects a fee from the enterprise involved. The corporate additionally takes a small fee for each profitable mortgage that it facilitates as a part of the Cred Stash

Moreover, as a part of the CRED RentPay performance, the corporate collects round 1 to 1.5% of the whole transaction quantity.

Consumer knowledge

CRED additionally collects in depth knowledge on its customers as they pay payments and in any other case work together with the platform. The corporate then sells this data to monetary establishments that use it to create higher bank card and mortgage merchandise.

Key takeaways:

  • CRED is an Indian fintech firm based in 2018 by Kunal Shah, who created the platform to unravel the belief points he believed have been current in Indian client finance.
  • CRED’s enterprise mannequin is predicated on the three key pillars of the shopper, app, and enterprise. Prospects are vetted for creditworthiness through the software course of, which will increase the probability that payments might be paid on time and that cash might be earned to redeem on accomplice provides.
  • CRED makes cash through itemizing charges that it costs companies in change for itemizing their services. It additionally collects a fee from each mortgage it facilitates and a separate fee from manufacturers every time a buyer redeems a proposal.

Key Highlights

  • Founding and Motivation: CRED is an Indian fintech firm established in 2018 by Kunal Shah. The platform was designed to handle belief points in Indian finance and create an ecosystem the place reliable people may join with lenders and monetary establishments.
  • CRED App and Options: The CRED app provides an intuitive and rewarding interface for patrons to handle bank card repayments and earn factors for unique provides. It has gained recognition for its elegant UI/UX design and excessive consumer rankings. The app supplies options like bank card funds, CRED Stash (short-term borrowing), CRED Retailer (coin redemption for model purchases), CRED RentPay (hire fee through bank card), and CRED Mint (P2P lending).
  • Attaining Unicorn Standing: In April 2021, CRED achieved unicorn standing with a valuation of $2.2 billion, turning into one of many quickest startups to achieve this milestone.
  • Buyer Worth Proposition: CRED’s app provides a number of worth propositions, together with seamless bank card fee administration, incomes and redeeming CRED cash, entry to short-term credit score (CRED Stash), and distinctive providers like CRED RentPay and CRED Mint.
  • Enterprise Mannequin Pillars: CRED’s enterprise mannequin is constructed on three pillars: prospects, the app, and companies. Prospects with a credit score rating of no less than 750 pays payments and earn rewards by way of the app, making a creditworthy consumer base.
  • Monetization Methods: CRED generates income by way of itemizing charges from accomplice manufacturers that showcase their services on the platform. It additionally earns commissions from redeemed provides and profitable loans facilitated by way of CRED Stash. Moreover, CRED collects a transaction charge from CRED RentPay.
  • Consumer Knowledge: CRED collects consumer knowledge as they work together with the platform, offering helpful insights. This knowledge is then offered to monetary establishments to reinforce bank card and mortgage product choices.

Checklist of FinTech Enterprise Fashions


Acorns is a fintech platform offering providers associated to Robo-investing and micro-investing. The corporate makes cash primarily by way of three subscription tiers: Lite – ($1/month), which provides customers entry to Acorns Make investments, Private ($3/month) that features Make investments plus the Later (retirement) and Spend (private checking account) suite of merchandise, Household ($5/month) with options from each the Lite and Private plans with the addition of Early.


Began as a pay-later answer built-in to retailers’ checkouts, Affirm makes cash from retailers’ charges as shoppers decide up the pay-later answer. Affirm additionally makes cash by way of pursuits earned from the patron loans, when these are repurchased from the originating financial institution. In 2020 Affirm made 50% of its revenues from retailers’ charges, about 37% from pursuits, and the remaining from digital playing cards and servicing charges.


Alipay is a Chinese language cellular and on-line fee platform created in 2004 by entrepreneur Jack Ma because the fee arm of Taobao, a significant Chinese language eCommerce website. Alipay, subsequently, is the B2C part of Alibaba Group. Alipay makes cash through escrows transaction charges, a spread of value-added ancillary providers, and thru its Credit score Pay Instalment charges.


Betterment is an American monetary advisory firm based in 2008 by MBA graduate Jon Stein and lawyer Eli Broverman. Betterment makes cash through funding plans, monetary recommendation packages, betterment for advisors, betterment for enterprise, money reserve, and checking accounts.


Venmo is a peer-to-peer funds app enabling customers to share and make funds with associates for a wide range of providers. The service is free, however a 3% charge applies to bank cards. Venmo additionally launched a debit card in partnership with Mastercard. Venmo received acquired in 2012 by Braintree, and Braintree received acquired in 2013 by PayPal.


Chime is an American neobank (internet-only financial institution) firm, offering fee-free monetary providers by way of its cellular banking app, thus offering private finance providers freed from cost whereas making the vast majority of its cash through interchange charges (paid by retailers when shoppers use their debit playing cards) and ATM charges.


Coinbase is among the many hottest platforms for buying and selling and storing crypto-assets, whose mission is “to create an open monetary system for the world” by enabling prospects to commerce cryptocurrencies. Its platform serves each as a search and discovery engine for crypto belongings. The corporate makes cash primarily by way of charges earned for the transactions processed by way of the platform, custodial providers supplied, curiosity, and subscriptions.


Compass is a licensed American real-estate dealer incorporating on-line actual property expertise as a advertising and marketing medium. The corporate makes cash through gross sales commissions (collected every time a sale is facilitated or tenants are discovered for a rental property) and bridge loans (a service permitting the vendor to buy a house earlier than the income from the sale of their earlier house is out there).


Dosh is a Fintech platform that allows automated money backs for shoppers. Its enterprise mannequin connects main card suppliers with on-line and offline native companies to develop automated money again applications. The corporate makes cash by incomes an affiliate fee on every eligible sale from shoppers.


E-Commerce is a buying and selling platform, permitting buyers to commerce widespread and most well-liked shares, exchange-traded funds (ETFs), choices, bonds, mutual funds, and futures contracts, acquired by Morgan Stanley in 2020 for $13 billion. E-Commerce makes cash by way of curiosity revenue, order movement, margin pursuits, choices, future and bonds buying and selling, and thru different charges and repair costs.


Klarna is a monetary expertise firm permitting shoppers to buy with a brief Visa card. Thus it then performs a smooth credit score examine and pays the service provider. Klarna makes cash by charging retailers. Klarna additionally earns a share of interchange charges as a fee and for pursuits earned on prospects’ accounts.


Lemonade is an insurance coverage tech firm utilizing behavioral economics and synthetic intelligence to course of claims effectively. The corporate leverages expertise to streamline onboarding prospects whereas additionally making use of a monetary mannequin to cut back conflicts of curiosity with prospects (maybe by donating the variable premiums to charity). The corporate makes cash by promoting its core insurance coverage merchandise, and through its tech platform, it tries to reinforce its gross sales.


Monzo is an English neobank providing a cellular app and a pay as you go debit card for shoppers and companies. It was one of many first app-based banks to enter the UK market, based by Gary Dolman, Jason Bates, Jonas Huckestein, Paul Rippon, and Tom Blomfield in 2015. All have been workers of Starling Financial institution, an identical neobank difficult the dominance of established monetary establishments in England. The corporate enjoys many income streams: enterprise and client subscriptions, interchange and overdraft charges, private loans, and extra.


NerdWallet is an internet platform offering instruments and tips about all issues associated to non-public finance. The corporate gained traction as a easy internet software evaluating bank cards. NerdWallet makes cash through affiliate commissions decided in response to the affiliate agreements.


Quadpay was an American fintech firm based by Adam Ezra and Brad Lindenberg in 2017. Ezra and Lindenberg witnessed the rising reputation of buy-now-pay-later service Afterpay in Australia and related service Klarna in Europe. Quadpay collects a spread of charges from each the service provider and the patron through merchandise charges, comfort charges, late fee, and interchange charges.


Revolut an English fintech firm providing banking and funding providers to shoppers. Based in 2015 by Nikolay Storonsky and Vlad Yatsenko, the corporate initially produced a low-rate journey card. Storonsky specifically was an avid traveler who turned uninterested in spending tons of of kilos on foreign money change and international transaction charges. The Revolut app and core banking account are free to make use of. As a substitute, cash is made by way of a mixture of subscription charges, transaction charges, perks, and ancillary providers.


Robinhood is an app that helps to spend money on shares, ETFs, choices, and cryptocurrencies, all commission-free. Robinhood earns cash by providing: Robinhood Gold, a margin buying and selling service, which begins at $6 a month, earn pursuits from buyer money and shares, and rebates from market makers and buying and selling venues.


SoFi is an internet lending platform that gives inexpensive schooling loans to college students, and it expanded into monetary providers, together with loans, bank cards, funding providers, and insurance coverage. It makes cash primarily through fee processing charges and mortgage securitization.


Squarespace is a North American internet hosting and web site constructing firm. Based in 2004 by faculty pupil Anthony Casalena as a weblog internet hosting service, it grew to grow to be among the many most profitable web site constructing firms. The corporate largely makes cash through its subscription plans. It additionally makes cash through customizations on prime of its subscription plans. And partially additionally as transaction charges for the web site the place it processes the gross sales.


Stash is a FinTech platform providing a collection of monetary instruments for younger buyers, coupled with personalised funding recommendation and life insurance coverage. The corporate primarily makes cash through subscriptions, cashback, fee for order flows, and curiosity for money sitting on members’ accounts.


Venmo is a peer-to-peer funds app enabling customers to share and make funds with associates for a wide range of providers. The service is free, however a 3% charge applies to bank cards. Venmo additionally launched a debit card in partnership with Mastercard. Venmo received acquired in 2012 by Braintree, and Braintree received acquired in 2013 by PayPal.


Wealthfront is an automatic Fintech funding platform offering funding, retirement, and money administration merchandise to retail buyers, largely earning profits on the annual 0.25% advisory charge the corporate costs for belongings beneath administration. It additionally makes cash through a line of credit and pursuits on the money accounts.


Zelle is a peer-to-peer fee community that not directly advantages the banks’ consortium that backs it. Zelle additionally allows customers to pay companies for items and providers, free for customers. Retailers pay a 1% charge to Visa or Mastercard, who share it with the financial institution that issued the cardboard.

Learn Subsequent: Fintech Enterprise Fashions, IaaS, PaaS, SaaS, Enterprise AI Enterprise Mannequin, Cloud Enterprise Fashions.

Learn Subsequent: Affirm Enterprise Mannequin, Chime Enterprise Mannequin, Coinbase Enterprise Mannequin, Klarna Enterprise Mannequin, Paypal Enterprise Mannequin, Stripe Enterprise Mannequin, Robinhood Enterprise Mannequin.

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