CRED's Next Big Play, MyPickup Shuts Shop & More

CRED Doubles Down On Luxury

The fintech unicorn has launched new offerings – a cobranded credit card and a concierge service called Sovereign – as well as sharpened its arsenal of personal finance management tools. So, what is CRED’s next big bet?

From Perks To Portfolios: The new launches are headlined by Sovereign, an invite-only membership programme that promises access to civilian spaceflight, curated art auctions and early stage investment opportunities. Beyond this, the fintech major has expanded its wealthtech repertoire with gold investments, fixed deposits and comprehensive portfolio management services.

The Master Plan: The fintech unicorn’s strategy revolves around capturing HNIs through a unified financial ecosystem. The new CRED IndusInd Bank RuPay credit card builds on this strategy by rewarding ecommerce spending, boosting transaction volumes and unlocking fresh revenue streams through interchange fees.

But, Profitability Haunts: This aggressive expansion unfolds against CRED’s troubling financial fundamentals. Despite operating revenue jumping 71% YoY to INR 2,397 Cr in FY24, the fintech’s losses expanded 22% YoY to INR 1,644 Cr. Adding insult to injury, its recent $72 Mn fundraise at a $3.5 Bn valuation came at nearly half of the 2022 peak of $6.4 Bn.

With IPO plans lined up for 2027, CRED faces mounting pressure to demonstrate sustainable monetisation from its affluent user base.

Locking Horns With Giants: The new launches thrust CRED into rough waters with established players in domains like concierge services and wealth management. While CRED has its premium users to bank on, fundamental questions loom around its unit economics, customer acquisition costs and monetisation efficiency.

So, can the new offerings generate sufficient revenue for CRED, or will they get a place in the fintech’s graveyard of experiments? Let’s find out…

From The Editor’s Desk

Pine Labs’ IPO Gets SEBI Nod: The markets regulator has granted its approval to the fintech major to launch its public offering. Pine Labs’ IPO comprises a fresh issue of shares worth up to INR 2,600 Cr and an OFS of up to 14.78 Cr shares.

MyPickup Shuts Shop: The EV ride-hailing startup has wound up operations amid challenges related to product-market fit and lack of patient capital. The startup offered a subscription-based electric auto-rickshaw service for daily commuters.

InCred Preps For IPO: InCred Financial Services’ parent will seek shareholder approval at its upcoming EGM to raise INR 1,500 Cr via fresh issue. The company is mulling an INR 300 Cr pre-IPO placement round, with plans to file its DRHP confidentially.

Swiggy’s New Offering: The listed foodtech giant has launched a new food delivery app ‘toing’ to offer economical meal options to users. The offering is currently only available at select Pune locations.

Zappfresh All Set For IPO: The D2C meat delivery startup has filed its RHP with SEBI for its public listing, which will consist of a fresh issue of 59.06 Lakh shares. Zappfresh’s profit nearly doubled YoY to INR 9.1 Cr in FY25, while operating revenue grew 45% YoY to INR 130.7 Cr.

Ola Electric Eyes INR 400 Cr Sops: The EV juggernaut has filed PLI claims to the tune of INR 400 Cr against its INR 3,000 Cr sales in FY25. Notably, the company had received about INR 74 Cr under the production-linked incentive scheme in FY24.

Bike Taxis To Return To Maharashtra: The state government has granted provisional bike licenses to operators like Ola, Rapido and Uber. The ride-hailing platforms will, however, be required to charge INR 15 for the first 1.5 km, with INR 10.27 per kilometre thereafter.

Pascal AI Labs Nets $3.1 Mn: The fintech-focussed AI SaaS startup has raised the capital in its seed round led by Kalaari Capital. Pascal AI Labs builds AI agents specifically for finance and investment professionals to automate research, due diligence and data extraction.

Inc42 Startup Spotlight Can Flit’s Zero-Commission Model Redefine Logistics?

For India’s countless delivery partners, the daily grind is a battle against dwindling earnings and opaque commission structures. Patna-based startup, Flit, is challenging this status quo with a rider-first approach, which it believes can disrupt the entire industry.

Flit’s Fix: Founded in 2024, the startup offers hyperlocal delivery services to individuals and enterprises. But unlike other players, Flit does not deduct a percentage from rider earnings and allows the customers to pay delivery partners directly. Riders can choose between a flat subscription of INR 25 per day or INR 5 per order, ensuring they take home what they earn.

A Differentiated Play: As the demand for instant delivery continues to surge, Flit believes that there is space for business models that prioritise rider sustainability alongside customer convenience. With its cost-efficient tech stack and innovative monetisation strategy, Flit is trying to make a dent in the $243 Bn Indian logistics industry.

Operating in the crowded logistics space, can Flit carve a niche with giants like Porter, Uber and Ola on its tail?

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