CRED presentation in entrepreneurship management

CRED is an Indian fintech platform that primarily rewards users for making timely credit card payments.
By Aakash Prajapat
Manav patel
Pavan kumar
Rishab jain
Abhishek Joshi

1. ENTREPRENEURSHIP MANAGEMENT

2. INTRODUCTION In this presentation, we will delve into the fascinating story of CRED, its visionary Founder, and the company's mission, vision, objectives , logo, what is cred, how does cred work, make money, cred app is safe, competitor's, Target market, marketing mix, swot analysis and competitors.

3. HISTORY CRED is an Indian company, based in Bangalore. This company was founded by Kunal Shah in 2018. The FinTech Unicorn startup is a members-only club that rewards individuals for their timely credit card bill payments by providing them with exclusive offers and access to premium experiences. It is a platform that allows credit card users to manage multiple cards along with an analysis of their credit score. Cred also lets users make house rent payments and provides short-term credit lines.

4. COMPANY PROFILE TYPE : PRIVATE • INDUSTRY : FINANCIAL TECHNOLOGY PAYMENTS • FOUNDED : 2018 • HEADQUARTERS : BANGALORE, KARNATAKA, INDIA • CORE TEAM : KUNAL SHAH (FOUNDER & CEO) • REVENUE : 1400 CRORE FOR FY23 • EMPLOYEES : 954 • WEBSITE : CRED.CLUB

5. FOUNDER OF CRED Kunal Shah is an Indian entrepreneur and venture capitalist who is the founder of CRED, which is considered the second-fastest-growing unicorn startup in India. From August 2010 to October 2016, he worked as CEO at FreeCharge , a company that he founded in 2010.

6. CRED TEGLINE

7. VISION MISSION The first goal was to help people who are responsible with their money live better lives. The second goal was to encourage more people to manage their finances well, so they can become part of the group of responsible money managers in the country. CRED wants to teach Indians about managing money and being responsible with credit cards. To do this, they share helpful articles on their website about credit cards, general finance, and financial technology (Fintech).

8. OBJECTIVES The platform has been established with the purpose of making credit card bill payments easier and to offer the users rewards upon timely payments. Today in this fast-paced life, there are so many monthly payments to make, especially credit payments such as EMI of that new car or of that new house or maybe for that new mobile phone you purchased using the credit card. Such payments are very important and missing such deadlines can lead to very hefty late payments charged by the bank. Believe it or not, a Credit Card Company's major source of income is the very hefty fines they charge for these late payments. This is exactly where Cred kicks in making it easy and convenient for anyone to pay their credit card bills on time.

9. LOGO OF CRED

10. WHAT IS CRED? CRED provides the ability to reduce the pressure of handling multiple credit cards and to help pay credit card payments on a timely basis. Users earn points that can be used towards prompt purchases through the CRED application. During his study, he found so many automatic products in developed countries such as supermarkets with no cashiers, gas station without an attendant, etc. but there's no such reputable mechanism that will allow people with zero extra charges to pay the correct amount of credit card bills in due time. It is best for creditworthy people. But the question was why should people pay their bills of credit cards through their app, and so the idea came to reward the loyal credit card users who paid their bills on time. CRED was introduced in April 2018 with this plan to draw consumers.

11. HOW DOES IT CRED WORK?

12. Your credit score ranges from 300 to 850 points. A higher number indicates a better credit score, while a lower number reflects poor credit. Lenders prefer lending to individuals with good credit scores because they're seen as lower risk. So, having a good credit score makes it easier to get a loan. CRED is an app that rewards users for paying their bills on time, but you need a credit score above 750 to join. It lets you share data like credit card info and expenses to track your spending and credit score. You earn CRED coins for paying bills, which you can redeem for offers. Businesses partner with CRED to reach more customers, making the offers more appealing.

13. HOW DOES CRED MAKE MONEY 1. CRED's Revenue Sources: Listing fees from businesses to showcase their products/offers on the app. Financial institutions pay for access to users' financial data to tailor their offers. 2. CRED Coins and Offers: Users earn CRED coins for paying bills on time. Coins can be redeemed for various offers like fashion items, spa vouchers, Amazon gift cards, etc. CRED earns a fee each time a user redeems coins for an offer. 3. CRED Pay: Developed with Razorpay and Visa, it offers instant payment experiences for brands.

14. 4. RentPay : Allows tenants to pay rent using credit cards, offering an interest-free credit period and reward points. Users are charged a transaction fee of 1%-1.5% based on the credit card network. 5. CRED Store: Member-exclusive deals on products/experiences. Users earn CRED coins for paying credit card bills, which can be used for rewards or special access. 6. CRED Stash: Digital lending platform offering personal credit lines. No registration/subscription charges, but users pay interest on borrowed money, displayed on the app.

15. IS CRED APP SAFE? YES CRED App Is RBI Approved. Hence, it is safe.

16. TARGET MARKET CRED focuses on people who use credit cards, starting with wealthy individuals and forming a community called Cred Club. Now, anyone with a credit score above 750 can join CRED's club. They're targeting Generation Y, particularly those aged 25 to 40, especially those over 30. Their marketing aims to catch the attention of Generation Y, featuring Rahul Dravid, Javagal Srinath, Venkatesh Prasad, Madhuri Dixit, Anil Kapoor, and Kumar Sanu in their ads. If someone has a lower credit score, they're put on a waitlist until their score improves or company policy changes. This approach leads to CRED having customers who are well-off and reliable with their credit, which reduces the risk of fraud affecting the platform.

17. CRED COMPETITORS

18. MARKETING MIX A common classification that began as the four Ps: product, price, placement, and promotion.

19. PLACE Cred has enabled online commerce and brand discovery through its 'Store' and 'E- commerce' platforms as the company provides all its services on the Cred App. However on October 2022, 'Scan & Pay' feature was launched, leading it to enter the offline payments space as well in the Indian market.

20. PRICE It currently does not charge any entry fees from its users as it offers registration/subscription. CRED just charges users a transaction fee of 1% 1.5% depending on the user's credit card network while paying rent using a credit card, where the amount is transferred to the house owner's bank account directly. It has partnered with various brands to whom they charge commission in exchange for giving them a space on the CRED App. CRED's Store is a member-exclusive selection of products and experiences at special prices.

21. PRODUCT CRED Coins- All bill payments are rewarded with CRED coins that can be redeemed as offers or cashback in Cred Store. CRED Cash- It is a short term low-interest instant credit line provided in partnership with IDFC bank. CRED Store- It is an e-store that contains product offers and listings from the partner brands. Cred Commerce is where all the cred coins earned by the customers are redeemed. CRED Rent Pay- Recurring payments such as rent and other EMI payments that can be routed through the linked credit cards CRED Mint- Person to Person lending facility that will match lenders who have surplus funds and borrowers who need funds on the platform. Lenders will earn a fixed interest of 9% on the amount invested.

22. PROMOTION CRED power play campaign – The campaign asked its customers to pay during the powerplay overs of the IPL match and win 100% cashback on the bill payment. CRED offered to pay one credit card bill for each IPL game.

23. Viral marketing/Moment marketing – This strategy refers to using the latest trends and memes to attract instant attention. For instance, look at the famous viral CRED ad “ Indranagar ka Gunda” featuring Rahul Dravid during IPL. In the advertisement, Rahul Dravid is seen getting furious at a traffic jam, yelling at higher peech , which is actually opposite to his real personality. The purpose of the ad is to show how people get amazed, with strange anger issues (in this case), when they are rewarded on paying their bills through the CRED app.

24. Customer acquisition strategy – CRED is well known for sending goodies to its existing target  customers. Imagine you are having  a get together with loads of friends around and you suddenly receive a cake. How exciting would it be! Then your friends ask you about the sender and you proudly reply it to be CRED. This is another way to let more people know about your brand.

25. SWOT ANALYSIS Strengths CRED has several strengths that make them one of the leading Money lending companies in India: Awesome Ul Credible Customer Base Future Growth Potential

26. Weaknesses Weaknesses Everyone has positive and negative sides. 1) Confusing Business Model 2) Unsustainable Revenue

27. OPPORTUNITIES Attracting Youngsters 2) Providing Other FinTech Services

28. Threats 1) Highly Competitive 2) Unpredictable Revenue

29. CONCLUSION Financial institutes like banks and credit card firms gain profit from CRED as it provides free credit card bill payment facilities to its users with zero transaction costs. CRED has an innovative marketing strategy.