The company told ET that it was raising $140 million in a mix of primary and secondary deals, which will value it at around $6.4 billion.
“GIC of Singapore leads this round, joining existing investors – Sofina, Tiger Global, FalconEdge, and Dragoneer – for an investment of $140 million (primary and secondary),” the company said in a statement on Thursday.
In regulatory filings on Thursday, the company said it had approved the issuance of 42,308 Series F compulsorily convertible preference shares at an issue price of Rs 1.45 lakh per share.
Singapore’s sovereign fund GIC led the round through its affiliate Lathe Investment Pte Ltd and picked up 31,997 shares worth Rs 466.67 crore.
Other participating investors included existing investor Tiger Global, Sofina Ventures, Alpha Wave Global (through Alpha Wave Ventures) and Dragoneer through affiliate DF International Partners, the filings showed.
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The four-year-old firm was last valued at $4.01 billion when it raised $250 million from existing investors in October last year.
Cred also counts Coatue Management, Insight Partners, DST Global, and Greenoaks Capital among its existing investors.
According to sources, Cred is looking to expand its financial services offering and will also look at inorganic opportunities to get into newer areas of growth.
In December, it acquired Happay to enter the expense management segment. It also acquired Chennai-based liquor delivery startup HipBar for its prepaid payment instrument license.
The company was also in final stages of discussions to acquire investment platform Smallcase in a share-swap deal, multiple people confirmed to ET.
On Thursday, Cred also onboarded on the Bharat BillPay ecosystem to provide easy bill payment solutions to members.
Launched in 2018, Cred helps users pay credit card bills easily and earn rewards.
It has since expanded to lending through Cred ‘Cash’ and enabled online commerce and brand discovery through its ‘Store’ and ‘Commerce’ platforms.
ET reported on January 28 that Cred was looking to
foray into the video commerce and group buying offerings under its ecommerce vertical Cred Store. The move was intended to boost user engagement, improve screen time, leading to increase in retention and transactions on the platform.
Cred’s parent Dreamplug Technologies has grown revenues to Rs 95.5 crore in the financial year ending March 31, 2021 (FY21), compared to Rs 18.14 crore in FY20.
Consolidated losses widened to Rs 523.8 crore, compared to Rs 361.1 crore in the year-ago period. Total revenue from operations grew to Rs 88.6 crore from about Rs 52 lakh.
The company is also in the process of shoring up various licenses from the Reserve
.
As part of its regulatory filings earlier in March this year, Cred also said that it was in process of applying for an account aggregator (AA) license through Dreamplug AA Tech Solutions, the entity it incorporated in January 2020.
An account aggregator (AA) is a type of RBI-regulated entity that helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network.
ET reported in November that Cred founder Kunal Shah, through Newtap Technologies, an entity floated by him, had acquired Parfait Finance & Investment, as Cred looks to double down on its lending aspirations. The acquisition has also been approved by the RBI.
