Exclusive: CRED Members Can Now Use CRED Coins For Offline, Online Purchases

In a bid to further shore up its user base, Kunal Shah-led Cred is piloting a new feature which allows users of the app to use CRED Coins at offline stores and for online purchases, sources told Inc42.

CRED rewards its users for making credit card payments through CRED Coins. Till now, CRED Coins were only allowed to be used for in-app purchases from the startup’s ecommerce marketplace.

For the pilot, CRED has partnered online and offline merchants to allow its users to redeem CRED Coins for select products at their outlets or apps, the sources said. For instance, a CRED member will be able to use coins at food and beverage outlets after scanning a QR at the merchant outlet. After the verification, the user will be able to redeem CRED Coins for getting discounts.

The coins can also be used to buy Zepto Pass, the quick commerce startup’s membership programme. In addition to redeeming coins,  users can earn cashback or vouchers on the websites of brands like Urban Company and ixigo to get cashbacks and vouchers. CRED plans to soon add more merchants to the programme.

The pilot is currently live for a few selected users. They can use CRED coins for making online purchases on the apps and websites of select merchants. The offline stores for the programme will go live soon in Bengaluru, before national expansion. 

CRED declined to comment on the development.

The development comes at a time when CRED has put in motion its super app plans with the launch of a number of services. It recently forayed into the insurance space. Last month, it partnered three insurance companies – Go Digit General Insurance, ICICI Lombard and Zurich Kotak General Insurance – to provide insurance service to its users.

It also launched CRED Money in July to enable its users to get 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 non-banking financial company (NBFC) L&T Finance to offer unsecured personal loans to customers. 

With the new pilot, the startup is likely looking to attract new users to explore its range of services. Besides, it might also be looking to increase its UPI transactions. In October, Sachin Bansal-led Navi overtook CRED to emerge as the fourth-largest player in the UPI space.

On the financial front, CRED’s operating revenue jumped 71% to INR 2,397 Cr in the financial year 2023-24 (FY24) from INR 1,400 Cr in the previous fiscal year. It attributed the rise in revenue to increase in member engagement and monetisation. CRED’s operating loss declined 41% to INR 609 Cr from INR 1,024 Cr in FY23. 

CRED, which is valued at $6.4 Bn, has raised over $800 Mn in funding from the likes of Tiger Global, Peak XV Partners, Alpha Wave Ventures, among others.