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Entrepreneurship and New Ventures: New Gen Idea-CRED

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Project Report on

New Gen Idea- CRED


Submitted to Indian Institute of Management Rohtak
In partial fulfillment of course requirement for
Entrepreneurship and New Ventures
Submitted to:
Prof. U.T. Rao

Submitted by: Group 9

Abhay Singh | PGP11068


Nishit Raipure | PGP11103
Shivanand Shah | PGP10171
Shubhang Choudhry | PGP11126
Simran Chawla | PGP11058

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Letter of Transmittal

November 24, 2021

Prof. U. T Rao

MICA, Ahmedabad

Subject: ENV Group Report as per course requirement

Dear Sir,

As per the instructions and guidelines of the course Entrepreneurship and New Ventures, we
hereby submit the Group Project report undertaken for the partial completion of the course on ENV
of Term V of the PGP course at IIM Rohtak. The report has been prepared after thorough research
and analysis. We have abided by all the instructions given by you in this regard and have prepared
this report after meticulous work. Kindly evaluate the same and provide your valuable inputs.

Regards

Group 09

ENV Term V-PGP11

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Introduction

CRED

CRED is a members-only club that rewards consumers who pay their credit card bills on time with
exclusive offers and premium experiences. It's a service that allows credit card users to manage several
cards while also receiving a credit score analysis. When members use the app to pay their credit card bills,
they are eligible for extra rewards based on their Experian or CRIF scores. One of the app's many features
was the credit card spend tracking and management tool, which provided the user with spend tracking and
card usage efficiency analysis.

The CRED Safeguard feature is an AI-powered system that records every step of a credit card payment
trip, including due date reminders, spending trends, and other card usage data. When a member uses the
app to purchase with a credit card, they are eligible for a variety of benefits, including access to events,
experiences, gift cards, and upgrades from companies like Diesel, Cure.Fit, Myntra, and Olive Bar &
Kitchen, among others. What steps do one needs to take to become a member of CRED?
As CRED membership is restricted, one must apply through the app by providing their full name and a
valid Indian cell phone number.

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Business Canvas Model

Customer Segments
The idea behind this startup is to capture the market of wealthy, affluent, and trustworthy customers who
own and use credit cards by creating a gated ecosystem of high trust and eventually building ways to
connect with each other. It also provides a safe space for financial institutions to lend money to
trustworthy individuals. The target audience initially was the Gen Y i.e individuals aging between 25 and
40 especially those over 30 years old and all the marketing campaigns are focused on attracting the Gen
Y.

Value Proposition

Cred’s business model, famous for its excellent user experience, provides the following values to its
customers:
● It provides customers with an instant credit line and facilitates peer-to-peer lending at a rate of
9% to lenders, which is significantly higher than what most savings accounts and deposits offer
● Users that pay on time are rewarded with CRED coins, which they may use on the 'Discover'
platform to get discounts on various products offered by CRED partners
● It's a one-stop shop for paying credit card bills, rent, and other bills with just five taps. It
eliminates the bother of managing many credit cards by making the process extremely simple,
straightforward, and convenient
● It keeps track of loan limits, analyses hidden costs and overall expenses, and tracks due dates and
delivers timely reminders to users to make payments
● Users can also compute their credit scores for free and use CRED's assistance to keep their credit
profiles clean and make wise financial decisions
Most importantly, it works along the lines where people pay together and can play together.

Key Activities
Major key activities that CRED provides its users are generally CRED management, CRED stash,
RentPay, CRED Store, CRED Mint, and CRED Travel
CREDIT Payment
It provides a unified payments interface to the users and enables them to pay their credit cards dues and
other bills through the app and receive rewards in the form of CRED points if they do so in time. They
can use these vouchers to avail offers on products of companies CRED has tie-ups with.

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CRED Stash
CRED Stash is an immediate credit line offered by CRED to give its clients access to credit more quickly
and at a rate that's roughly a third of what they'd pay with a credit card. It has a Rs 5,000,00,000 credit
limit. It does away with the time-consuming verification and application processes that are traditionally
connected with loans, making the process smooth and straightforward for users. It has worked with a
number of banks, including the IDFC bank, to offer these loans to clients.

RentPay
CRED partnered with Liquiloans, an RBI-registered P2P non-banking financial organization, to offer
CRED mint, a peer-to-peer lending product (NBFC). It allows customers to lend money and earn interest
rates of up to 9% per year, which is significantly higher than savings accounts and other standard deposit
options. Lenders can invest anywhere between $1,000,000 and $1,000,000 and earn returns throughout
the course of the investment period.

CRED Store
It has partnered with different companies in multiple domains of travel & tourism, health, e-commerce,
and so on to allow users to spend the CRED coins they earn and avails offer and discounts. It has worked
with over 2000 brands to provide clients with CRED special prices that can be easily accessed through the
CRED store.

CRED Mint
In partnership with Liquiloans, an RBI registered P2P non-banking financial corporation, they launched
its peer to peer lending product. It allows customers to lend money and earn interest rates of up to 9% per
year, which is significantly higher than savings accounts and other standard deposit options. Lenders can
invest anywhere between $1,000,000 and $1,000,000 and earn returns throughout the course of the
investment period.

CRED Travel
Through the application of CRED, customers can avail facilities of purchasing flight tickets, booking
hotels and managing other expenses.

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Key Channels
CRED cater to the customers through their website and application as key channels. Through these
channels, customer can avail all the facilities of CRED

Key Partners

They partnered with over 2000 brands that offer their products and services on the platform at exclusive
prices to CRED customers. It has also tie-ups with more than 34 banks. For eg., its product CRED Stash
provides its users cheap credit in partnership with the IDFC bank. P2P lending has also been made easier
thanks to a partnership with Liquiloans, an RBI-registered NBFC. Because it has a tripartite arrangement
with the sponsor PSP(Axis Bank) and NPCI, the National Payments Corporation of India, it supports
payments through Axis Bank and participates in UPI through the Payments Service Provider(PSP) bank.

Key Resources
● Financial Resources- The financial requirements are met through investors support like Sequoia
Capital, DST Global, Ribbit Capital, General Catalyst and many more
● Technology- 19 technology products used by CRED including HTML5, jQuery and Google
Analytics.
● Human Capital- The company has approximately 600+ employees

Customer Relationship

CRED tries to build a long term relationship with their customers as they want to retain their customer
base and expand market share by their customer-focused marketing campaigns while trying to increase
customer confidence with them. CRED provides simple and intuitive transaction processing while
providing them incentives as CRED points for doing the same.

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Cost Structure
Their cost structure shows a significant increase in marketing in past few years. A large chunk of share is
attributed to IPL sponsorship signed by them last year. This investment helped them in making awareness
in the market.
Other expenses such as employee cost, infrastructure, operating expenses- such as handling backend
problems of websites or applications increased in the past couple of years.

Revenue Stream
It has enormous potential of generating revenue. Some sources such as:
Affiliate Income
They tie up with different businesses who offer their products to the users to discover their platform. This
gives CRED users a wider range of options when it comes to redeeming their CRED tokens. Businesses,
on the other hand, benefit from visibility and user attention. As a result, every time a user selects an offer
from the app, the business pays CRED a charge for bringing them the business.

Revenue from Advertisement


They optimize their advertisement to encourage more spending to their 1% cream population through the
platform by their spending pattern data and earn commissions on the sales of those products.

Transaction Fees
They charge a transaction fee of 1-1.5% on every transaction made through the platform

Revenue from Loans


CRED lends loans to customers through its instant credit line, CRED Stash, by which they earn interest
which is basically lesser than the charges of using usual credit cards

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Business Canvas Model of CRED

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Fundenable Matrix of CRED

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