Looks like they finally changed things up for the better. I had posted about them before, was pretty sure they'd shut soon because their RBF+escrow model just didn't make sense as a business owner.
You cannot justify taking money yourself first and then transferring to your client after deducting your charges. Cash flow is everything for a small business, becoming a gatekeeper is stupid when bank loans and even informal loans are an option. I even told this to their team upfront.
Looks like they still have it but NACH option is good and rate of interest is almost at par with banks and nbfcs now (quoted 1% per month). Was checking out Kinara capital recently, they charge 24% annually which is double the cost.
I hope velocity can turn things around with their lessons, and it's not too little too late. Let's see how it goes.
A big challenge for arguably most early stage startups is going from 2-3 lakhs per month to 5-10 lakhs per month and more in revenue. Market is willing to provide credit or loans for the latter but not the former.
It's the former that n...
Not surprised. They have a shitty model. Probably going to shut this FY or next unless they turn things around 180 degrees and fast. Similar case for others they've mentioned in the article as their competition.
VC here. Doing this for fun. Don't take all views seriously.
Zombie startups - Startups that have messed it up already. They are alive but just biting their time. Doom is inevitable for these startups in a few months
I will name a few
Sharechat Khatabook Apna Zepto Dealshare Frontrow Udaan
Plea...
Given the current funding winter and companies are now chasing profitability metrics, how is CRED’s future looking given they are more focused on experience and experience and there doesn’t seem to be a big monetisation play and more gim...
