CEO Kunal Shah to compete with Zerodha, Groww? CRED's subsidiary applies for stock broking license

CRED, the fintech firm goes beyond credit card bill payments, lending, insurance and wealth management services. The company looks forward to expanding its financial services portfolio by entering into the stock broking space. 

CRED has applied for a stock broking licence via its subsidiary Spenny, as reported by Money Control. However, the company has not yet issued an official statement or confirmed the same. This move will position fintech firm in a highly competitive stock broking space dominated by Zerodha, Groww and Angel One.

The fintech unicorn’s entry into the stock broking space encompasses its larger plan to become a one-stop destination for all financial services. Months ago, the company expanded its financial service portfolio with the acquisition of Kuvera, a wealth management platform. It further bolstered its portfolio by acquiring Spenny, the Y-Combinator-backed micro saving and investment, a year ago. 

With entry in the stock broking sector, CRED can explore revenue opportunities from account management, transaction fees, and advisory services. CRED’s founder Kunal Shah had earlier stated that his company would never launch a speculative product to lure investors with quick returns or any other product harming customers’ financial health. For the unversed, CRED derives its major revenue from lending. 

CRED started as an invite-only app to pay credit card bills. The company has expanded its operations in finance sector, reporting a 66 per cent rise in revenue during financial year (FY)24 to Rs 2,473 crore in just three years. The Bengaluru-based firm had registered Rs 1,400 crore in revenue during FY23. The company has cut down its operation losses by 41 per cent to Rs 609 crore against Rs 1024 crore. Meanwhile, the company aims to offer investment products like SIPs, digital gold, fixed deposits and direct mutual funds.