CRED, the credit card payment app, has managed to raise $81 million in a Series C round. As part of the process, the Bengaluru-based company bought back shares worth $1.2 million, that is, about rupees nine crore, from its employees.
The startup, which has been in operation for two years now, allowed its employees to sell up to 50 per cent of their vested stocks in the Company. The investors involved in this round were DST Global along with Sequoia Capital, Ribbit Capital, Tiger Global and General Catalyst, who have already invested in the Company earlier. The new investors included, Sofina, Coatue and Satyan Gajwani of Times Internet.
This is the first time that CRED, the credit card repayment app, launched by Kunal Shah, has initiated a share buy-back programme.
This is the Company’s way of acknowledging the contribution of its staff in its growth and giving them a chance to create wealth and share in its success.
The Company apparently processes 20 per cent of all credit-card bill payments in the country, with more than 35 per cent of premium credit-card holders in the country on it. Its newly introduced CRED Pay targets online merchants, who offer instant, one-click credit card payments for CRED members.
Last year, in November, Swiggy had also initiated a secondary liquidation programme for its staff, worth seven to nine million dollars, allowing employees to exercise their stock options.