CRED Partners with IndusInd Bank to Launch Co-Branded Credit Card

CRED, the fintech unicorn led by founder Kunal Shah, is gearing up for a major push in the Indian financial market. The company is planning to launch its own co-branded credit card in association with IndusInd Bank, with industry insiders indicating an official rollout in the next 10 to 12 weeks. This marks a significant new chapter for CRED as it moves beyond its well-known suite of bill payments, rewards, and credit-related services.

Expanding Beyond Bill Payments

Currently, it offers users several features such as credit card bill payments with rewards, credit score tracking, hidden fee alerts, rent payment, insurance tools, FASTag recharge, shopping offers, and travel bookings. By entering the credit card space, CRED aims to provide a more complete financial experience and solidify its position as a comprehensive financial platform. The partnership with IndusInd Bank is expected to give CRED both credibility and reach as it designs a product tailored for its tech-savvy, urban user base.

User Base and Custom Benefits

As of June 2024, CRED boasted over 13 million monthly active users, primarily consisting of premium and salaried professionals who already use credit cards. With a co-branded credit card, CRED can deliver unique perks—such as higher reward points, airport lounge access, special EMI options, and exclusive member benefits—catering directly to its loyal user base. These data-driven benefits may also help CRED better understand user spending patterns and enhance its existing financial tools.

Profitability Challenge and Valuation Dip

Despite impressive growth, CRED still faces profitability hurdles. After its peak valuation of $6.4 billion, a recent funding round of $72 million saw its valuation drop by 43% to $3.64 billion. In FY24, CRED’s revenue rose 66% to ₹2,473 crore, but its net loss also increased by 22%, totalling ₹1,644 crore. The company is targeting profitability by FY26, and leadership believes the upcoming credit card initiative could significantly contribute towards this milestone.

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Revenue Opportunities and Competitive Market

Industry experts highlight that entering the credit card business opens up new streams of revenue for CRED—annual card fees, interchange income, spending commissions, and cross-selling of financial services. However, competition is fierce, with rivals like Paytm, Slice, and OneCard all launching their own co-branded offerings. If executed well, CRED’s card could draw more users, especially those already committed to its app and who value premium financial experiences.

Kunal Shah’s Vision and Recent Developments

Kunal Shah continues to prioritize trust, transparency, and best-in-class user experience in all CRED offerings. The proposed credit card is rumored to have no joining fees, transparent terms, and dedicated customer support. Going forward, it may bundle the card with exclusive rewards, premium subscriptions, and even cashback on investments or wealth management services. Recently, Kunal Shah has also been vocal at industry events and social media about CRED’s ongoing efforts to solve consumer pain-points, boost financial literacy, and embrace efficient technology—signalling more product launches and partnerships could be on the horizon.

Aiming for Full Financial Platform Leadership

With these bold moves, CRED is positioning itself as far more than a bill payments app. The planned launch of the co-branded credit card with IndusInd Bank could be transformative, helping to address profitability gaps while delivering added value to users. As CRED continues to innovate, build trust, and broaden its services, there’s real potential for the company to regain its high-growth valuation and solidify its place as a leading consumer financial platform in India.