The company appears poised to become the second-most valuable fintech startup in India after Paytm.
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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.
The recent spate of exits at the newly independent VC firm is not a surprise. It is a reset for a fund that’s so far operated as if it is special and now has to adjust to new realities.
Vijay Shekhar Sharma has focused on improving compliance, cutting costs and recovering market share after the RBI shut down his payments bank last year. The fintech major is yet to recover to its earlier highs, but its turnaround is gathering momentum.