CRED Makes An Entry Into Insurance Sector With CRED Garage, Insurance Management Platform

CRED, the Kunal Shah-led fintech unicorn, has launched its own insurance products through its vehicle management platform CRED garage, as part of its ongoing expansion of additional businesses.

The new product includes car insurance, with consumers receiving additional reductions based on their credit scores.

In a statement to the media, the company’s representative said, “We are offering insurance from our partners to CRED members via CRED garage, with benefits such as credit score discount, reminders to check challans, PUCC, and more.” There is a substantial overlap between credit card users and car owners in India, and we helped them handle several cards efficiently. CRED garage provides a platform for clients to manage different obligations related to their automobiles.

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The Bengaluru-based fintech startup launched Garage in September 2023 to meet their members’ vehicle-related needs. The site also includes a DigiLocker integration, which allows users to access documents such as driver’s licenses, registration certificates, and insurance papers.

CRED garage gained traction, with more than 4.2 million automobiles parked on the platform in fiscal year 2023-24. Meanwhile, because to the impact of the additional services, CRED’s monetised customer base increased by 58% in FY24.

Shah then stated that CRED is working on plans to offer a variety of additional products this year and next year to help it monetise its user base.

This development comes after the company introduced a few new goods in the previous months before Shah disclosed the company’s aspirations for new offers.

For example, CRED Money was launched in July, providing users with a unified view of all their bank account balances, reminders for recurring payments other than credit card transactions, and a tool for analyzing spending.

CRED also teamed with L&T Finance, a non-banking financial firm (NBFC), to provide customers with unsecured personal loans.

Furthermore, the company developed a new option called CRED Guarantee, which allows users to repay credit card outstanding amounts on time.