Idea Validation Report: CRED

I still remember discussing CRED's probable business model after office hours with a few friends at work, we spent nearly an hour but were nowhere close to what CRED is doing now!

CRED recently raised a new funding round and nearly doubled its valuation to $4bn in less than 10 months!

Many seemed surprised by such a high valuation, but if you try to understand their goal closely it makes sense!

CRED says only users with 750+ credit score can use the app, and they already have 7.5 million users. India has 25 million credit card users currently, that itself gives CRED a 3X potential!

Now if going forward CRED relaxes this number to 720 credit score and moves beyond just credit card holders its potential market size becomes 114 million. That's right, a 15X potential in market size!

And these aren't just any kind of users, these are high credit worth, high LTV users!

So wait, CRED is acquiring high credit, high LTV users but what problem are they solving? Credit card payments?

I say CRED will solve any problem for these high LTV users!

And the initial signs are there with CRED's RentPay, CRED Stash, CRED Store and Travel as well!

So, in short, What is CRED doing?

It is basically acquiring all high LTV customers, and it will keep solving their problems with repeat use cases. So any company that wants to acquire these high LTV users will come to CRED and pay them a small % vs. spending millions on running ads and acquiring a mix of customers.

Presenting our Advanced Idea Validation Report on CRED evaluated with our proprietary Idea Validation Tool!

Download the report here:

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