"EDITION 206"

Published: 12/1/2020

Good morning! It's Tuesday and I'm delaying the column by a day- will be writing a bit about Sequoia's Surge program. We've got a couple of large fundraising rounds today- CRED raising their Series C and (from Friday) Unacademy raising another round.

  • https://tcrn.ch/3fX8aFV: CRED raises a $80M Series C
  • ➡️ CRED, the popular fintech that just turned two, has raised an additional $80M in a Series C valuing the company at $800M. This is a significant increase from the company's previous valuation of $450M when the company raised their $120M Series B.

    ➡️ The interesting thing about the round was that it was mostly (if not completely) done by existing investors in CRED- led by DST Global with participation from Sequoia Capital and Ribbit Capital.

    ➡️ At this point I think it's quite clear everyone knows what CRED does- incentivizing people to pay their credit card bills on time and it has grown quite quickly where it is being used by millions of cardholders. In the month of October, users paid credit card bills of over 3000 Cr on CRED through UPI alone (with the other payments, it would probably be much higher).

    ➡️ CRED has had a monumental 2020 and has expanded to offering a couple different financial services- a flexible credit line & the ability to pay one's rent through CRED. The company also has been working on expanding their eCommerce marketplace within the app and is also working on building a payment service that would let CRED users use their points to make purchases.

    ➡️ The company was one of the sponsors of the recent IPL season and has seen a surge in sign-ups on the platform. I have a feeling that the company doesn't really need the capital but was possibility preempted by the investors who want to fuel the company's growth further and deploy more capital.

    ➡️ The company does have its critics who don't understand the company's business model. And to those folks I say- "not everyone gets it", but this might help you.

    2. https://bit.ly/33yUbkJ: Unacademy raises at a $2B valuation from Tiger Global and Dragoneer

    ➡️ EdTech company Unacademy has raised an undisclosed amount from Tiger Global Management & Dragoneer Investment Group, valuing the company at $2B. The comes just 2 months after the company was valued at $1.45B following an investment from SoftBank's Vision Fund 2.

    ➡️ Every month, I think we've finally run out of EdTech rounds and every month I've been proven wrong. But Unacademy is one of the EdTech companies I'm actually a huge fan of and it seems like their subscription product has completely blown up in 2020 - the company has grown its revenues by 9x in the last 12 months.

    ➡️ The company has also done a great job in its strategy to acquire companies in different verticals and I think that could be the company's strategy to grow its business moving forward alongside their focal subscription product.

    ➡️ Unacademy has over 47,000 educators on the platform who teach students in over 5000 cities in 14 different languages. On top of that, the company conducts 150,000 live classes each month. Sheesh! Talk about scale!

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/TaylorLorenz/status/1333542776638730247

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