Cred to take a minority stake in its Mumbai-based lending partner LiquiLoans with an investment of up to $10 million, with this funding the latter's valuation stands at $200 million.
Last year,Cred had tied with LiquiLoans, operated by Trillionloans Fintech, to launch Cred Mint, a service that allows customers to lend to one another at an annual interest rate of up to 9 percent.
Cred claims that the investment will cement Cred’s ties with Liquiloans. It will also further give boost to LiquiLoans’ technology capabilities.
In 2018, founded by Kunal Shah, Bengaluru-based Cred started as an app that enable users pay credit card bills and rewards them in the form of “Cred” coins, which can be redeemed across many partner businesses. Since then, the firm has ventured into lending and e-commerce.
Despite the fact that that it facilitates over 25 per cent of the credit card bill payments, Cred’s loss widened to Rs 524 crore for FY21 from Rs 360 crore in the previous year. The company had 45 per cent increase in net loss for Financial year 2021.
"LiquiLoans has innovated in creating trust-centered financing products and is a leader in peer-to-peer lending with a strong management team. Their work has helped expand access to credit, and we look forward to partnering with them in their next phase of growth and innovation," said Shah.
In order to give individual retail investors direct access to millions of retail borrowers via a technology platform and thereby create a reliable consumer lending platform, Gautam Adukia and Achal Mittal developed LiquiLoans.
“Our goal has been to build a trusted and credible P2P lending platform. To this end, we have partnered and will continue to partner strategically with entities that share a similar ethos. Our long-term relationship with Cred and this investment will accelerate our goal of creating efficiencies for seamless borrowing and investments,” said Mittal.
In 2019, Matrix Partners India backed LiquiLoans, however, the amount of transaction is not disclosed yet.