While the details regarding the venture are yet to be disclosed, in a LinkedIn post, Shah called it “a platform to celebrate and reward the most creditworthy people of India.”
According to a report by Entrakr, Cred is expected to be targeted at top-tier working professionals with yearly income of over ₹15,00,000 and a CIBIL score of 700-750.
It further quotes a source, who explains Cred as a platform that enables users to pay their credit card bills through the app and in return they will get Cred Coins that can be redeemed while availing lifestyle services and products.
Earlier in April this year, Shah raised $30 million for his new venture from a group of investors led by Sequoia Capital.
The latest venture will mark Shah’s second attempt as an entrepreneur, after successfully co-founding and selling FreeCharge, to Indian e-commerce startup Snapdeal, in a deal worth $450 million, in 2015.
Kunal Shah, a dropout of Narsee Monjee Insitute of Management Studies’ dropout, then went on to serve as the chairman of Internet and Mobile Association of India (IAMAI) and later an Advisor to Sequoia Capital.
Shah has continued to be an active investor in the Indian startup ecosystem, post his exit from FreeCharge. Some of his notable investments include Razorpay, Unacademy, Innov8, Voonik, LifCare, and TVF.
Last month, it was reported that Ashish Kashyap’s new fintech startup INDwealth raised $30 million as seed capital from Steadview Capital, an India dedicated investment fund.
Also, Satyen Kothari’s wealth management startup Cube Wealth raised ₹14.6 crores in series A funding from Singapore-based Beenext, Japan-based Asuka Holding, and Silicon Valley-based 500 Startups.
It is worth noting that Indian fintech industry is witnessing a rapid growth and the involvement of the Indian veterans is further expected to strengthen the industry.