Fintech Unicorn Cred Expands Into Insurance With Motor Insurance Offerings

Cred, the fintech unicorn known for its payments and lending services, has announced its entry into the insurance market, starting with motor insurance. The company is leveraging its vehicle management platform, Cred Garage, to promote these insurance products. According to a media report Akshay Aedula, head of product and growth at Cred,  stated that users can receive additional insurance discounts based on their credit scores.

Cred Garage allows users to monitor vehicle expenses, track pending traffic fines, and manage insurance and pollution certificate renewal dates. While the vehicle management features are free, Cred plans to generate revenue through commissions from insurance providers.

The platform currently has around 7 million registered vehicles and 4.4 million users, many of whom own multiple vehicles. Cred Garage was launched in September 2023.

Cred holds a corporate agency license from the Insurance Regulatory and Development Authority of India (IRDAI) and is collaborating with Zurich Kotak General Insurance, Go Digit General Insurance, and ICICI Lombard to offer these products.

This expansion into insurance rounds out Cred's comprehensive suite of financial services, which began with credit card bill payments and has since evolved to include Unified Payments Interface (UPI), credit, and wealth management services. The company recently reported that 90% of its revenue comes from payments, credit, and now insurance.

Additionally, Cred operates an in-house non-banking finance company, Newtap Finance, and recently acquired Kuvera in February 2024 to bolster its wealth management offerings.