E-COMMERCE BUSINESS

VENTURE ANALYSIS

CRED
ANSHUL MISTRY 23000691
SHARVI SALUNKE 23000588
DEVANSH KOTHARI 2300648

Presented to:
Prof., Jigar Shah
BUSINESS Foundation and Vision:

OVERVIEW CRED was founded in 2018 by Kunal Shah, who

also built the successful Freecharge platform.
CRED’s goal is to create a community of
responsible spenders and offer them exclusive
benefits. Its tagline, “Win rewards for paying
your credit card bills,” reflects its purpose: to
make paying bills a rewarding experience. By
turning routine payments into an aspirational
activity, CRED has positioned itself as a
premium service in India’s competitive fintech
world.
 How CRED Makes Money?
CRED follows a freemium model. Basic services like paying credit card bills and
checking your credit score are free, but the company earns money through:

Brand Partnerships: Premium brands pay CRED to reach its exclusive,

affluent users.

Financial Products: Revenue comes from services like CRED Mint, where
members lend money and earn interest.

Advertisements: Businesses pay to advertise within the app.

Future Plans: CRED may introduce subscriptions for premium features.

 Key Features Who Uses CRED?
Pay Credit Card Bills: Easy payments with
rewards (CRED Coins). Urban professionals with disposable
Credit Score Tracking: Free updates on your credit income.
score with tips to improve.
Spending Insights: Tools to track and understand
spending patterns. Millennials and Gen Z users who
CRED Store: A marketplace offering discounts on value lifestyle-driven services.
luxury brands and experiences.
CRED Mint: A peer-to-peer lending feature where
High spenders managing multiple
members earn interest.
CRED Pay: Use rewards to shop on partner credit cards.
websites.
How CRED Stands Out?
Targeted Audience: Rewards for Discipline:

CRED focuses only on people with Rewards for Discipline: Encourages users to
high credit scores. pay bills on time by gamifying it.
How CRED Stands Out?
Premium Image:
Smart Use of Data:
Combines finance with lifestyle,
creating a unique identity. Personalized offers based on user behavior.
 Challenges
Scaling Up: Focusing on high-credit-score users limits growth.

Monetization Pressure: High costs for rewards and campaigns can

affect profitability.

Competition: Rivals like Paytm and PhonePe offer similar services

and are expanding.

Expensive Marketing: Big campaigns, like IPL ads, are costly to

maintain.
What’s Next for CRED?

More Products: Expanding into insurance, and investments.

Wider Reach: Tiered memberships for users with lower credit scores.

Global Expansion: Entering markets with strong credit card usage.

Stronger Payments Integration: Making CRED Pay a go-to payment

option.
 MARKET ANALYSIS

Business Environment

​Industry Dynamics: The fintech space in India is crowded with established players and emerging startups.
In a niche but highly competitive move, CRED has focused its attention only on credit card users.

​ arket Evolution: As the use of credit cards increases at 25 percent year over year, there will be ample
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chances for platforms like CRED to flourish; however, market share may get diluted with each new
entrant.

​ acro Trends: Post-pandemic, the focus has intensified on contactless payments and financial literacy,
M
whose demand is perpetually fueling the need for a product like CRED.
Technology Environment
Advanced AI: The AI-based credit score evaluation by CRED presents value to the customers as it makes the credit
health of their accounts transparent. Counterparts such as Paytm and Slice are riding the same waves.

Technology Bottlenecks: As the user data grows, the infrastructure needs to scale to maintain smooth app
functionality, especially at the time of peaks like reward redemptions or bill due dates.

Opportunities: The investment in blockchain technology would make the data safe and transparent for CRED, thus
increasing trust among its users.

Legal & Regulatory Environment

Compliance Hurdles: India's Personal Data Protection Bill, similar to other regulations could pose a threat to CRED's
way of collecting and processing user data.

Financial Monitoring: CRED's transactions may face closer examination due to the Reserve Bank of India's vigilance
over digital payment systems.

Potential for Pro-Active Policies: Working in tandem with the regulators, to define clear guidelines around the
fintech platforms, and can result in CRED being a sought-after partner in the ecosystem.
 Socio-Political Environment
Increased sensibility of customers: Urban Indians, CRED's target audience, are becoming more value-conscious as
they look for better ways of upgrading their lifestyle.

Political Uncertainty: Regulatory changes or government policies targeting digital payment systems could create
roadblocks. However, CRED’s strong brand appeal among affluent users gives it resilience.

​ ntapped Potential: Engaging semi-urban audiences through tailored marketing could expand its reach and solidify
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its presence in new segments.

Gap Analysis
User Exclusion: A major gap is the exclusion of users with credit scores below 750, limiting the audience to affluent
urban users.

Monetization Gap: Though CRED started monetizing through CRED Pay and RentPay, the dependence on venture
capitals is a risk because of its heavy investment.

Addressing Gaps: A "freemium" model or products for low-tier credit scores might expand the user base without
diluting the premium brand image.
Competition
Direct Competitors: Slice and Paytm Postpaid offer credit card-like services and rewards. They cater to a wider
audience but miss the class premium niche of CRED.

Indirect Competitors: Platforms such as Flipkart and Amazon provide rewards through credit card purchases and
BNPL (Buy Now, Pay Later) programs with due competition for CRED's loyalty programs.

Opportunity to differentiate: Enhancement of unique selling propositions such as gamified rewards and exclusive
experiences can help CRED stand out in this competitive landscape.

Demand Forecast
Project growth: India is expected to have 150 million credit card users by 2025, which can help CRED have a more
larger pool of available users.

Emerging Services: The demand for credit score tracking and financial wellness tools can grow and create
opportunities to diversify the services to be offered by CRED.

​Revenue Growth: Revenue generation is expected as more customers get hooked on CRED Pay and RentPay.
 Market Segments
Urban Affluents: The existing users are those who are high-income with good credit scores and rich benefits and
exclusivity.

Emerging Professionals: This includes young professionals that may not have good enough credit scores.

​ emi-Urban Users: This section is a potential a new market untapped due to growing credit card penetration in
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smaller cities.

Customer Attitudes, Behaviour, Preferences & Trends

Attitudes: Customers want to use platforms that facilitate secure and value-add transactions of their financial
needs.

Behaviour: CRED customers are stickier to the app - they come in every month for credit card bill pay and
redemption of their rewards.

Trend: People are warming up to platforms that gamify financial management- such as making dull tasks like
paying bills into rich experiences.
 STRATEGIC ANALYSIS
Product-Market Fit
1. Credit Card Payment Management:
- Simplifies bill payments by consolidating multiple credit cards in one interface.
- Provides reminders for due dates, minimizing the risk of late fees and enhancing financial
discipline.
- Seamless UPI integration for hassle-free payments.

2. Incentives for Payment:

- Users earn CRED coins for paying bills, which can be redeemed for discounts, offers, and access to
exclusive products through the CRED Store.
- The gamification aspect, such as "CRED jackpot" or "CRED mint," increases user engagement.

3. Addressing Affluent Demographics:

- By targeting high-credit-score individuals, CRED creates a sense of exclusivity, enhancing user
retention and appeal.
 Key Vulnerabilities
1. Niche Target Audience:
- CRED’s success heavily depends on a specific demographic—users with high credit scores and
disposable income.
- This exclusivity limits its addressable market and scalability, especially in a country where credit card
penetration is around 5% (as of 2024).

2. Revenue Diversification:
- Current revenue streams rely primarily on partnerships (e.g., advertising, affiliate sales) and
commissions.
- Limited monetization of user data and an absence of significant subscription-based income pose
risks.

3. Market Saturation Risk:

- While CRED’s brand remains unique, similar reward-based models could dilute its competitive
advantage over time.
 Core Competencies & Resources
1. Attracting High-Net-Worth Individuals:
- CRED’s invite-only model ensures that only
individuals with credit scores above 750 can join.
- This exclusivity positions CRED as a premium
platform, appealing to users who value status and
reliability.

2. Strong Tech-Back End:

- Advanced AI and machine learning are leveraged
for personalized recommendations, fraud detection,
and real-time data analysis.
- Seamless app performance and intuitive UX/UI
design contribute to its high app ratings and
customer satisfaction.
- Data-driven insights allow CRED to curate offers
that align with user behavior, ensuring higher
redemption rates and engagement.
 Risk Management

1. Data Privacy & Security:

- CRED employs stringent security protocols, including 256-bit encryption, to protect sensitive user
information.
- Regular audits and adherence to RBI guidelines ensure compliance with legal requirements.
- User trust is bolstered by its "zero tolerance for data misuse" policy.

2. Market Competition:
- To stay ahead of competitors like Paytm, PhonePe, and Google Pay, CRED continuously innovates its
offerings.
- Diversifying into areas like CRED RentPay and CRED Cash provides additional value to users and
reduces reliance on rewards.
- Partnerships with financial institutions allow CRED to offer services like loans, expanding its
ecosystem.
 Partnerships & Alliances
1. Banks and Financial Institutions:
- Partnerships with major credit card issuers like HDFC, ICICI, and SBI facilitate seamless integration for bill
payments.
- Collaboration with NBFCs to offer CRED Cash (short-term credit lines).

2. Luxury Brands and Retailers:

- Alliances with brands like Armani, Levis, and Dyson in the CRED Store provide exclusive products and offers.
- Curated experiences, such as spa days and fine dining, appeal to its elite audience.

3. Technology Providers:
- Integration with UPI payment systems ensures smooth transactions.
- Use of cloud computing providers (e.g., AWS or Azure) for robust app scalability and data processing.

4. Marketing & Advertising Partners:

- Sponsored listings and featured campaigns on the app help brands gain visibility among a premium audience.

5. Real Estate Services:

- Through CRED RentPay, collaborations with property owners and real estate platforms allow users to pay rent via
credit cards, earning rewards in the process.
 OPERATION ANALYSIS
Strategic Execution Product & Service Design

User Experience: The intuitive application interface with effortless navigation is aimed
at making the user experience feel sophisticated and elite.

Exclusivity: Based on credit score, only people scoring above 750 are considered for
membership, thereby making one feel they belong to an elite class.

Features Excluding Credit Card payment, the app features:

Tracking of credit scores
Services like CRED RentPay that help in rent payment through a credit card.
Access to curated rewards through the CRED Store.
Supply & Distribution Management Inventory Management

App Development: Where the platform Rewards Management:

continually runs flawlessly and where Rotating and updating offers in the CRED Store to
updates ensure utmost speed and reliability. keep the experience fresh and engaging.

Digital Partnerships: Partnerships with Ensuring high-demand rewards are available and
premium brands allow the reward to be accessible without delays.
delivered in a virtual sense through the app.
Partnership Coordination: Managing relationships
No Warehouse: Since it operates only in a with partner brands to consistently source
digital environment, there are no logistics or attractive rewards.
physical inventory management challenges.
Product & Service Quality

Security: Usage of advanced encryption (256-bit) and compliance with RBI guidelines ensure user data is
secured.

Reliability: Payments are processed instantly, thus giving assurance to users about the bank's reliability.

Premium Brand Associations: Rewards are sourced from top-tier brands, reinforcing the premium
positioning of CRED.

High-quality focus thus keeps high user satisfaction and rating of apps.

All-Digital Delivery: The app is used to automate bill payments and reward redemptions, guaranteeing on-
the-spot results and convenience.

Real-Time Financial Tools: Features like one-tap payments, reminders, and smart insights streamline
financial management for users.

Personalized Experience: The use of data analytics in personalizing rewards and notifications on specific
user preferences.
People Management

Tech Talent: A team of developers, designers,

and data scientists constantly works on app
improvements, security, and feature innovation.

Customer Support: Dedicated personnel assist

users with issues such as payment disputes, app
glitches, or reward redemptions.

Innovation Culture: The leadership and team are

driven by a culture of innovation, striving to
redefine the digital payment and reward
experience.
Payment Processing & Reward Acquisition

Advanced Payment Technologies

Quick Bill Payments:

-UPI integration helps to pay bills instantly.
-Minimized Potential for Mistakes through Automated Procedures

Reward Acquisition with Uncomplicated Processes:

-Collaboration with partnering brands ensures that the rewards reach users without
any complexities, and on time.
-Reward redemption increases trust and usage among users.
RECOMMENDATION

01 02 03

Expand Target Audience: Multiple Revenue Streams Increase Target Tier 2 and 3 City
Penetration

Introduce features targeting Introduce paid premium

Rewards must be tailor-made
users with improving credit features by subscription
according to local preferences.
scores (600+). (such as planning tools for
Partnering local businesses to
Offer rewards for financial finances, and higher tiers of
use location-specific rewards.
education and credit-building rewards).
products to increase the user Offer anonymized analytics to
population partnered brands and
monetize insights.
RECOMMENDATION

04 05 06

Optimize Rewards and Strengthen Brand Efficiency Improvement:

Inventory Management Partnerships:
AI-driven predictive analytics for
Introduce dynamic reward Mid-tier and emerging brands managing the trends of app
categories along trending in addition to luxury brands performance and rewards.
user activities.
Alliances with fintech start- Customer support through
Deliver high-demand rewards ups for co-services integration with chatbots and
seamlessly and readily in the AI-powered query resolution.
CRED Store.
Thank you!