Do you guys know about CRED & Newtap Technologies (NBFC)?
- So after raising millions of dollars for "innovating in fintech", CRED has decided to get into the centuries old business of lending - The main company has burnt investor money mainly to build out distribution but no product. - Now when they decided to get into lending, Kunal Shah acquired an NBFC where he personally owns approx 80% stake and CRED owns 20% - Through this NBFC, CRED gives out their loans on BNPL products. Now Kunal Shah wants to slowly sell the rest of his stake to the main company CRED - Except the NBFC is worthless without CRED's distribution. And CRED is worth a lot less without any product and Kunal Shah holds only 12% equity in the main cash-burning loss-making company after all those dilutions in funding rounds. - By making CRED acquire this NBFC at inflated valuations where he owns majority stake, he's gonna personally cash out once again while CRED will still have a long journey ahead of them. How are the CRED investors ok with this?
cuckingfunt99
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Chiller
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Cafeinatedpragmatist
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Cred doing buyback? It doesn't even make money
Am I missing something here?
CRED has offered four liquidation opportunities to its employees since its inception, generating a combined wealth of INR 250 Cr
https://inc42.com/buzz/cred-launches-4th-accelerated-wealth-programme-records-lifetime-esop-buyback-of-inr-250-cr/