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Abhishek's avatar

What a fantasy you have tried to write. Because I really can't describe this one in any other word. The analysis is good, but then it's a case of having a bias which sort of defeats the purpose of all that analysis.

The number of people who pay credit card fees in India is less than 4% of overall credit card user. Your TAM goes out of the window right there. You want CRED to be AMEX of India - Conveniently forgetting that AMEX has been present in India since years and been nowhere close to where they are in US. I hold a platinum card and have never paid a single penny in fees - the day they ask me, I will simply cancel it.

Compare the CAC of an AMEX or an HDFC bank to provide a similar card to that of CRED and you will realize why it doesn't make sense. Yes, he has the luxury of time ("Burning money"), but that's all. I have 50 L+ points on CRED and all I see is 4-5 useless deals. CRED will die , but not soon because neither the founder has the ethical ability to return investor's money nor he has any business model. As simple as that.

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Dhiraj Rastogi's avatar

Excellent analysis and explanation. Looking forward for more such articles. Please share the link of other articles in your series. Just subscribed!

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