CRED Forays Into Insurance Vertical

SUMMARY

CRED has entered into the insurance space in partnership with three insurance companies through its vehicle management platform CRED garage

The company will offer insurance to CRED members with benefits such as credit score discount, reminders to check challans, PUCC, and more

Recently, the fintech unicorn launched CRED Money and CRED Guarantee, while it also partnered with L&T Finance to offer unsecured personal loans to customers

Kunal Shah-led fintech unicorn Cred has entered into the insurance space in partnership with three insurance companies through its vehicle management platform CRED garage.

The company confirmed that it has partnered with Go Digit General Insurance, ICICI Lombard and Zurich Kotak General Insurance to provide insurance service to its users.

The new offering includes motor insurance, where users will be offered additional discounts based on their credit scores.

ET reported the development first.

“We are offering insurance from our partners to CRED members via CRED garage, with benefits such as credit score discount, reminders to check challans, PUCC, and more. There is a significant overlap between credit card users and car owners in India, and just like we enabled them to manage multiple cards easily. CRED garage is a platform for them to manage multiple responsibilities with regard to their vehicles,” the company said in a statement.

The Bengaluru-based fintech company launched garage in September 2023, to serve their members’ vehicle-related needs. The platform also features a DigiLocker integration, enabling users to access documents like driver’s licences, registration certificates and insurance papers.

CRED garage claims to have gained traction with 4.2 Mn users and more than 7 Mn vehicles parked on the platform since its launch.

Meanwhile, benefitting from the impact of the new offerings, CRED saw its monetised customer base grow 58% in FY24.

Shah then said that CRED is working on plans to launch a number of new products this year and the next year, which will help it further monetise its user base.

This development comes after the company rolled out new products in the past few months before Shah announced the company’s plans of new offerings.

For instance, CRED Money was rolled out in July, enabling its users to have a unified view of all their bank account balances, reminders for recurring payments beyond credit card transactions and a tool to analyse spends.

Additionally, CRED partnered with non-banking financial company (NBFC) L&T Finance to offer unsecured personal loans to customers.

Furthermore, the company also launched a new offering called CRED Guarantee to allow users in making repayment of credit card outstanding amounts on time.

Updated at 12:46 PM