In India’s booming startup ecosystem, few names are as recognizable and impactful as Kunal Shah, the founder of CRED. A philosopher-turned-entrepreneur, Kunal Shah has redefined how we view financial behavior, trust, and credit in a country long plagued by poor credit awareness and user engagement. With CRED, he took a dull routine—credit card bill payment—and turned it into a premium, reward-based experience.
In this blog, we dive deep into who Kunal Shah is, the evolution of CRED, how it works, its business model, and the impact it continues to make on India’s financial landscape.
Who Is Kunal Shah?
Kunal Shah is a serial entrepreneur, best known for founding FreeCharge (sold to Snapdeal in 2015) and CRED, one of India’s fastest-growing fintech startups. Born in Mumbai, Kunal holds a degree in philosophy from Wilson College and briefly pursued an MBA before dropping out.
Unlike many tech entrepreneurs with engineering backgrounds, Kunal’s strength lies in behavioral science, consumer psychology, and an obsession with human trust systems. His unconventional background gives him a unique lens to tackle India’s financial challenges.
Kunal Shah’s Early Journey
- FreeCharge (2010):
Kunal’s first major success, FreeCharge, allowed users to recharge mobile phones and earn coupons from top brands. It merged utility with rewards — a theme that would later reappear with CRED. - Exit & Sabbatical (2015–2017):
After selling FreeCharge to Snapdeal, Shah took time off, traveled, and studied trust-based economies. He began thinking deeply about India’s trust deficit in finance — why good financial behavior wasn’t rewarded and how credit was often mishandled or misunderstood.
Birth of CRED (2018)
Launched in 2018, CRED was built on a simple premise — reward financially responsible behavior. The app initially focused on helping users pay credit card bills on time, offering them CRED coins which could be redeemed for exclusive deals, discounts, and access to premium experiences.
Kunal Shah’s core belief:
“India doesn’t have a credit problem; it has a trust problem. Good behavior must be rewarded.”
CRED aimed to create a high-trust community — only users with high credit scores (above 750) could join. This exclusivity was both a filter and a feature.
How CRED Works
At its core, CRED is a bill payment platform for credit cards. But its appeal lies in the gamification of finance. Here’s how it works:
- Sign-up with PAN and verify credit score
- Link credit cards and get bill reminders
- Pay bills via UPI, net banking, or cards
- Earn CRED coins for every rupee paid
- Redeem coins for rewards like gadgets, travel vouchers, offers from premium brands, and access to exclusive CRED events
CRED soon expanded into RentPay (house rent via credit cards), Store (premium e-commerce), and cashback-based games like CRED Spin and CRED Bounty.
CRED’s Business Model
A common criticism CRED faced early on was, “How does it make money?” Despite its slick design and high user engagement, CRED didn’t charge users, and the rewards seemed too generous.
Here’s how CRED evolved its revenue model:
🔹 1. Lead Generation for Brands
CRED partners with premium brands looking to target high-income, creditworthy users. These brands pay to feature in the app’s reward ecosystem.
🔹 2. CRED Mint
A peer-to-peer lending platform where trustworthy users lend to each other. Returns are higher than fixed deposits, and risk is lower due to curated profiles.
🔹 3. CRED Pay
A checkout option for e-commerce where users can pay with CRED coins and get instant cashback. CRED earns a commission from the brand.
🔹 4. Data-Driven Products
CRED uses anonymized data to create personalized financial services, including credit score insights, loan recommendations, and BNPL (Buy Now, Pay Later) features.
Funding & Valuation
CRED’s rapid growth and Kunal Shah’s reputation have attracted massive investor interest. By 2024, CRED had raised over $800 million from top-tier investors like Sequoia Capital, Tiger Global, Falcon Edge, DST Global, and others.
Its valuation as of 2025 is estimated to be around $6.5–7 billion, placing it firmly among India’s most valuable fintech startups.
CRED’s Unique Positioning
🔸 User Base
Unlike mass-market platforms, CRED targets affluent and urban users, typically salaried professionals, business owners, and NRIs. This audience is not price-sensitive but experience-driven.
🔸 Design & UX
CRED’s minimalistic and elegant interface has set new benchmarks in Indian fintech. From bill reminders to reward visuals, the app feels like a lifestyle product, not a utility.
🔸 Trust & Reputation
The high entry barrier (750+ credit score) means CRED users are seen as low-risk and financially disciplined. This allows the platform to offer premium financial products and services.
Challenges Faced by CRED
Despite its massive growth, CRED has had its share of criticism and hurdles:
❌ 1. Profitability Questions
With huge spends on rewards and marketing (including IPL sponsorships), critics question whether the business is sustainable long-term.
❌ 2. Niche Audience
While elite users are profitable, India’s vast market lies in Tier-2 and Tier-3 cities. CRED has limited reach here.
❌ 3. Regulatory Scrutiny
As CRED dabbles in lending and payments, it must stay compliant with RBI norms and data protection laws. Regulatory shifts can impact its offerings.
❌ 4. Competition
Apps like PhonePe, Paytm, and Slice have launched competing features. Banks also offer rewards directly, reducing CRED’s uniqueness.
CRED’s Cultural Impact
CRED did something remarkable — it made credit card bill payment aspirational.
Its advertising campaigns during the IPL, starring actors like Rahul Dravid (“Indiranagar ka Gunda”), Bappi Lahiri, and Neeraj Chopra, were viral hits. These quirky, self-aware ads gave CRED a pop-culture identity, appealing to millennials and Gen Z.
Beyond finance, CRED influenced:
- App design trends across Indian fintech
- A new wave of reward-based engagement models
- Conversations around creditworthiness and financial behavior
What’s Next for CRED in 2025 and Beyond?
CRED is no longer just a bill payment app. Its roadmap includes:
- CRED Insurance: Micro insurance plans and premium wellness packages
- CRED Travel: Credit card-based travel rewards and booking services
- CRED Auto: EV financing and car-related benefits
- Wealth Management: Mutual funds, SIPs, and financial advice for the urban elite
Kunal Shah has hinted at transforming CRED into a “financial OS for the top 25% of India” — a one-stop platform for premium users’ spending, savings, and credit needs.
Lessons from Kunal Shah’s Journey
Kunal Shah is not just building companies—he’s changing behavior. His story offers valuable lessons:
- Solve for Trust, Not Just Transactions
He focuses on long-term relationships, not short-term clicks. - Design Matters
From UI to rewards to ads, everything on CRED feels elevated. - Be Bold with Vision
Even when critics mocked CRED’s “losses,” Shah stayed firm on building for the top layer of India. - Think Behavior First
As a student of psychology, he believes in nudging users toward good financial habits through positive reinforcement.
FAQs About Kunal Shah and CRED
Q1. Who is the founder of CRED?
Ans: Kunal Shah, an Indian entrepreneur and investor, is the founder and CEO of CRED.
Q2. How does CRED make money?
Ans: Through brand partnerships, CRED Pay commissions, lending via CRED Mint, and data-led financial products.
Q3. Is CRED safe to use for bill payments?
Ans: Yes, CRED uses bank-grade encryption and is trusted by millions of users for secure credit card transactions.
Q4. What is CRED’s eligibility requirement?
Ans: A minimum credit score of 750 is typically required to join CRED.
Q5. What is the current valuation of CRED in 2025?
Ans: CRED is estimated to be valued at around $6.5 to $7 billion.
Conclusion
Kunal Shah and CRED represent the evolution of Indian fintech — intelligent, aspirational, and built on trust. While the future remains unpredictable, one thing is certain: Kunal Shah will continue challenging the norms, turning everyday behaviors into extraordinary experiences.
In a world filled with transactional products, CRED stands out as an emotional, behavioral, and aspirational platform, shaping how India’s financially responsible citizens are recognized and rewarded.
