Kunal Shah's Cred Takes the Wheel with 'Cred Garage' in Vehicle Management

Cred, a fintech unicorn renowned for its credit card and bill payment services, is expanding its horizons with the introduction of 'Cred Garage,' a foray into the vehicle management space. This new feature, integrated within the Cred App, offers a range of services including concierge services, parking solutions, and more. Starting September 28th, Cred plans to roll out 'Cred Garage' to all of its members.

It's important to note that 'Cred Garage' is an extension of Cred's existing bill payment services rather than a pivot into a new industry, as clarified by a company spokesperson to moneycontrol . The move is driven by the recognition of significant overlap between unique credit cardholders and car owners, both of whom typically belong to the top 10 per cent of high-spending individuals with higher disposable incomes.

The spokesperson stated, "Cred Garage is an extension of Cred's mission to improve the lives and lifestyles of its members."

So, what can members expect from 'Cred Garage'? The feature offers a centralized dashboard where members can access a variety of services. These include priority 24/7 concierge services, timely bill payment reminders, document management, and insights into their spending habits. Cred has also integrated DigiLocker into its app, allowing members to conveniently access essential documents such as driver's licenses, vehicle registration certificates, and insurance papers.

One of the standout features of 'Cred Garage' is its commitment to keeping members' vehicles in top shape. The app will send reminders for essential tasks like pollution checks, emission tests, and insurance renewals to ensure that members' vehicles remain in mint condition. Additionally, members can easily renew their motor insurance through the app and gain access to exclusive perks.

This expansion into the vehicle management space comes at a time when Cred has been adapting to changing market dynamics. The average value of Unified Payment Interface (UPI) transactions on the platform has decreased, and its share of the credit card bill payment market has also seen changes.

Despite these challenges, Cred has shown resilience and growth. In the fiscal year 2022, the company reported a substantial increase in revenue, with a nearly 340 percent jump from Rs 95 crore in FY21 to Rs 422 crore in FY22. However, it's worth noting that the company also reported a net loss of Rs 1279 crore in FY22, more than double the losses incurred in the previous fiscal year.

As Cred continues to diversify its offerings and explore new avenues like 'Cred Garage,' it remains a company to watch in the evolving landscape of fintech and digital services.



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