Ever wondered how a startup can become a household name-and a billion-dollar company-without worrying about making money? CRED did just that.
But what happens when the music stops and investors start asking, "So… where's the revenue?"
If you've ever dreamed of building a disruptive business, or just want to know how some of India's boldest startups play the game, this post is for you.
CRED's story is more than a fintech case study-it's a crash course in growth hacking, brand psychology, and the art (and risk) of putting revenue on the back burner. You'll learn why CRED's "growth now, profit later" playbook worked-until it didn't-and what every founder (or curious reader) can steal from their journey.
By the end, you'll know how to build a magnetic brand, when to focus on monetization, and why timing your pivot is everything-without falling into the "growth at all costs" trap.
💡 The Growth-First Gamble: Why CRED Chose Users Over Profit
CRED's first rule? Make users fall in love-worry about money later. Founder Kunal Shah zeroed in on a unique pain point: India's "trust deficit" in finance. Instead of chasing everyone, CRED courted the top 1%-the affluent, creditworthy, FOMO-prone crowd.
Here's how they pulled it off:
- Irresistible rewards for paying credit card bills (think cashbacks, exclusive deals, gamified experiences).
- Exclusivity as a magnet: Only high-credit-score users got in, turning CRED into a status symbol.
- Product obsession: Every feature (CRED Coins, rent payments, lending) was designed to make the app indispensable.
CRED burned through cash, but they weren't reckless. The goal was "irreversibility"-make it so sticky that users couldn't imagine life without it.
If you want loyalty, solve for habit-not just transactions.
🧠 Brand as Moat: How CRED Made Itself Unforgettable
CRED didn't just build a product-they built a persona. While other fintechs begged for attention, CRED became the cool club everyone wanted to join.
- Aspirational branding: CRED was the Apple of fintech-premium, exclusive, and a little mysterious ("Not Everyone Gets It").
- Cultural moments: Remember Rahul Dravid's "Indiranagar ka Gunda" ad? That was CRED turning a cricketer into a meme, and a meme into mainstream recall.
- Community over crowd: By focusing on a tight-knit, high-value user base, CRED made membership a badge of honor.
- Digital dominance: Witty memes, influencer collabs, and clever campaigns made CRED a favorite among millennials and Gen Z.
The result? Brand equity that outpaced revenue-and a user base hooked on more than just cashback.
The right brand can make your product unforgettable-even before it's profitable.
📈 The Revenue Reckoning: When Growth Had to Meet Reality
For years, CRED's "revenue can wait" mantra worked-thanks to deep-pocketed VCs and the promise of future riches. But markets mature, capital tightens, and sooner or later, the bill comes due.
What changed?
- Regulatory shakeups: RBI's new rules on lending and UPI made some revenue streams trickier.
- Growth plateau: Revenue growth slowed-from 67% YoY in FY24 to about 20% in FY25.
- Investor pressure: With losses still stacking up, CRED had to show a real path to profit.
Here's how they pivoted:
- Diversification: Lending (CRED Mint, CRED Stash), financial services, and brand partnerships became revenue engines.
- Cost discipline: Marketing and acquisition spend was slashed, cutting losses by 41% in FY24.
- Strategic expansion: Buying companies like Happay and Kuvera opened new doors in expense and wealth management.
Sooner or later, every startup must answer the revenue question.
🎯 What Founders Can Steal from CRED's Playbook
CRED's journey is packed with lessons for anyone building (or dreaming of building) something big:
- Brand before revenue: A strong, differentiated brand creates loyalty-even when you're not making money yet.
- Build habits, not just users: Make your product irreplaceable and future monetization gets easier.
- Capital is a tool, not a crutch: Venture money can buy time-but not forever.
- Monetization matters: Growth is fun, but sustainable revenue and operational discipline are non-negotiable.
- Stay agile: Regulatory shifts and competition mean you must keep evolving.
The best founders know when to chase growth-and when to pivot to profit.
🪄 The CRED Equation: Timing Your Pivot for Maximum Impact
Here's the real secret: It's not "growth vs. revenue"-it's knowing when to switch gears. CRED's early disregard for profit wasn't a mistake; it was a calculated bet. But the smartest leaders know when to change the rules as the game evolves.
- Build your brand and user base first-if you can afford it.
- Watch the market, investors, and your own numbers closely.
- Pivot to monetization before the music stops-not after.
Long-term wins come from bold bets-and the courage to change course when it counts.
💭 Your Turn: The Growth vs. Revenue Dilemma
What's your take-would you risk it all for growth, or play it safe with steady revenue?
CRED's story shows that both approaches have their time and place. The real skill isn't picking one over the other-it's reading the room, understanding your market, and having the courage to pivot when the moment demands it.
The next time you see a startup burning cash for growth, remember: they might be building the next big thing-or they might be one funding round away from reality hitting hard.