Cred raises $81 million, announces Esop buyback worth $1.2 million

Sequoia-backed credit card repayment platform Cred is buying back employee stock options worth $1.2 million as part of its Series C fundraise in which its valuation has nearly doubled to $806 million. The company said eligible employees will be able to vest as much as 50% of their shares.

The company in a release said that 10% of its cap table has been allocated for ESOPs and it is looking at every opportunity to create wealth for employees as it grows.

"Cred has raised $81 million in its Series C round at a post-money valuation of $806 million," the company said. "Existing investor DST Global led the round, along with Sequoia Capital, Ribbit Capital, Tiger Global, and General Catalyst. In addition, Sofina, Coatue and Satyan Gajwani of Times Internet also invested in this round."


“As we raise funds to support our next phase of growth, it's important to acknowledge the role that employees have played in our success. We are committed to enabling wealth-creation opportunities for them and have allocated 10% of our cap table for ESOPs even at the Series C stage,” said Kunal Shah, founder, Cred.

Cred, which processes 20% of all credit card bill payments in India, saw its user base jump to over 5.9 million with a median credit score of 830. Over 35% of premium credit card holders in India are on Cred, with members spending twice of the average user in India, the company said.

“One in five waitlisted individuals work to bring their credit scores above 750 and become members, validating Cred’s potential in enhancing financial well-being,” it said.