Investor wealth erosion, losing a majority stake in the wealth management business and regulatory concerns haunt the 26-year-old financial services group.
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A crash in lending saw the fintech end the financial year in the red. But its payments business is going strong, and the worst may be over in the loans business.
They were the app’s flagship feature until the RBI shut down new deposits into Paytm wallets a year and a half ago.
The Kunal Shah-helmed fintech needs both growth and profitability to raise capital. But the two goals are contradictory and CRED will soon have to decide between raising at a reduced valuation or delaying the fundraise.