Cred's valuation slump signals caution for India's fintech companies

The sharp markdown despite backing from existing investors reflects growing investor caution and a broader recalibration in the Indian fintech and credit-led ecosystem

Fintech player Cred’s recent fundraise of $75 million has come at a sharp reset of its valuations — signalling that the exuberance in the sector is coming down.

 

After the fundraise, the firm’s valuation has gone down to $3.5 billion, a fall of 45 per cent from the $6.4 billion in 2022.

 

Valuations have fallen even as existing investors put money in the company, including Kunal Shah, founder and chief executive officer (CEO), Cred.

 

“Between 2022 and now, there has been a reset in the fintech market, both domestically and internationally. We have seen valuations come down and that is