CRED- Business Model

Parth Malpani
3 min readFeb 12, 2023


CRED is an Indian fintech company that provides a membership-based rewards platform for credit card users. It was founded in 2018 by Kunal Shah, the co-founder of FreeCharge, a leading mobile wallet and online payment company in India.

The platform provides a convenient and secure way for users to keep track of their credit card bills, while also earning rewards and recognition for their responsible financial behavior.

In addition to providing a rewards platform, CRED also aims to educate users about responsible credit card usage and help them improve their credit scores. The platform provides information and resources on topics such as managing debt, understanding credit scores and improving financial literacy.

CRED has gained significant popularity in India and has been well-received by both users and credit card issuers. It has been recognized for its innovative business model and commitment to promoting financial responsibility and literacy

The company’s business model is based on providing incentives and rewards to users who pay their credit card bills on time and in full through the CRED app and is based on the concept of rewarding customers for their credit card bill payments. It operates through a mobile application that allows users to manage their credit card payments, track rewards, and avail of exclusive offers. The key components of the CRED business model are:

  1. Marketing: CRED heavily relies on digital marketing, influencer marketing, and word-of-mouth marketing to attract new users. The company also partners with various brands to offer exclusive discounts and deals to CRED users.
  2. Customer Support: CRED has a dedicated customer support team that is available round-the-clock to assist users with any queries or issues they may face. The company also has a comprehensive FAQ section and in-app support to provide quick solutions to common problems.
  3. Data Analysis: CRED collects and analyses data on users' spending habits and payment patterns. This information is then used to offer tailored rewards and discounts to users, helping to increase customer loyalty and engagement.
  4. Partnerships: CRED partners with various banks, credit card issuers, and brands to provide users with exclusive discounts and offers. These partnerships help to increase the value proposition of the platform and attract more users.
  5. Revenue Model: CRED generates revenue through commissions earned from its partners and advertisers. The company also offers premium features and services to its users, which are charged as a subscription fee.

CRED has achieved significant recognition and success since its founding in 2018. Some of the key achievements and milestones of CRED include:

  1. Rapid growth: CRED has seen rapid growth since its launch, attracting a large and loyal user base in a short amount of time.
  2. High user engagement: The platform has a high level of user engagement, with many users using the app regularly to manage their credit card bills and earn rewards.
  3. Recognition from the industry: CRED has been recognized and awarded by several organizations and media outlets, including being named as one of the top fintech startups in India by various sources.
  4. Promotion of financial literacy: CRED is committed to promoting financial literacy and responsibility, and has received recognition for its efforts in this area.

These achievements are a testament to CRED's innovative business model and commitment to providing value to its users, credit card issuers, and the wider financial community.

Overall, CRED’s business model is based on a win-win situation, where users benefit from earning rewards for paying their bills, and credit card issuers benefit from acquiring new customers and improving customer engagement through the CRED platform.

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Parth Malpani

Parth is a High School Senior who trying to find some odds and make something really big and is an Aspiring Entrepreneur, Tech, and Automobile Geek