Cred is leveraging its vehicle management platform, Cred Garage, to pitch insurance products to its users, and depending on their credit score, it is offering additional discounts to make the product attractive, said Akshay Aedulia, head, product and growth, Cred.
Garage is a platform where Cred users can track their vehicle spends, pending traffic ‘challans’, and insurance and pollution renewal dates. They can also get assistance in case of roadside breakdown. While vehicle management comes at no cost, Cred is looking to generate revenue from the product through commissions from insurance companies.
The platform has around 7 million registered vehicles and 4.4 million users, some with multiple vehicles in their name. The platform was launched in September last year.
Overall, Cred has 13 million monthly users, of which around 11 million transact actively.
“At Cred, our basic philosophy is to reward good behaviour, hence we have worked with three insurance companies to co-create an insurance product which offers additional discounts on the insurance premium to customers with good credit scores,” Aedulia said.
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The company, which has a corporate agency licence from the Insurance Regulatory and Development Authority (IRDAI), is working with Zurich Kotak General Insurance, Go Digit General Insurance and ICICI Lombard to offer these products to its customers.A corporate agency is an insurance distributor which can work with nine insurance companies. To work with more, an entity will need the insurance brokerage licence.
“We are working with a few more insurance companies and will increase this partnership even more,” Aedulia said. “Currently, we have approval for this product from the IRDAI.”
Cred’s foray into insurance completes its bouquet of financial services offerings, which started with credit card bill payments and went into Unified Payments Interface (UPI), credit and wealth management. The company recently said that it gets 90% of its overall revenue from payments, credit and insurance.
Cred has a major distribution play in personal finance, and also has an in-house, non-banking finance company named Newtap Finance. For its wealth management service, Cred acquired Kuvera in February 2024. And now Cred has built its own insurance distribution business through Garage.
The company reported total revenue of Rs 2,473 crore in FY24, up 66% from the previous year. Its net loss, which includes its employee stock ownership plans, was at Rs 1,644 crore, up 22% year-on-year. The company has raised $866 million and was last valued at around $6.2 billion in 2022, data from Tracxn shows.
