Cred, the Bengaluru-based fintech platform led by Kunal Shah, is set to take on key financial players such as Zerodha and Groww with its subsidiary, Spenny, having applied for stock broking license, Moneycontrol reported.
The application for the stock broking license was made by Cred through its subsidiary, Spenny, the report added. This development comes nearly a year after Cred acquired the Y Combinator-backed micro-savings and investment platform for an undisclosed amount.
While Cred has not officially commented on the news yet, the decision to venture into stock broking will put it in direct competition with well-established players like Zerodha, Groww, and Angel One.
But Cred’s plan is aimed at not just taking on the already existing giants but to place stock broking as a natural extension of its goal to offer a full suite of financial services to its growing user base.
Since its launch, Cred has steadily expanded its offerings beyond its original focus on credit card bill payments.
Cred’s giant leap
In early 2024, Cred upped its wealth management services by acquiring Kuvera, a platform specialising in wealth management. Cred’s plans to provide a wide range of investment products, including direct mutual funds, fixed deposits, SIPs, and digital gold, along with financial planning tools, the report said.
Kuvera had previously considered entering stock broking but withdrew its application, which may be the reason for Cred’s current efforts through Spenny.
However, breaking into the competitive stockbroking market will not be easy. Established players such as Zerodha and Groww dominate the space, with the latter reportedly leading with over 12 million clients, followed by Zerodha with eight million.
New competitors, including PhonePe and major financial giants like Jio Financial Services and BlackRock, are also eyeing a share of the market.
Despite the humongous task ahead, Cred is positioned for growth. In FY24, it reported a revenue of nearly ₹2,500 crore, marking a threefold increase over the past three years, and it reduced its operating losses by 41 per cent to ₹609 crore.