Latest news with #Freecharge
Mint
7 days ago
- Business
- Mint
From Freecharge to CRED: Kunal Shah responds to LinkedIn post questioning his loss-making startups — 'We need more...'
CRED's Kunal Shah on Saturday responded to a LinkedIn post which questioned 'why we celebrate the entrepreneur' even when his startups gave mounting losses and zero profitability over 15 years. Shah, known for co-founding Freecharge and later CRED, gave his insights on the ongoing debate about the metrics of entrepreneurial success, particularly in India's growing startup ecosystem. The discussion started after a LinkedIn user Adarsh Samalopanan, who identified himself as senior consultant of Deloitte, pointed at the poor financial performance of Shah's ventures so far. The consultant's post highlighted that Freecharge, founded in 2010, earned ₹ 35 crore by 2015 but incurred a significant loss of ₹ 269 crore. Snapdeal later acquired Freecharge for ₹ 2,800 crore, only for Axis bank to purchase it for ₹ 370 crore, which is a mere 14% of its earlier valuation. Similarly the post noted that Cred, launched in 2018 has earned ₹ 4,439 crore after almost seven years in business, however it still reported a loss of ₹ 5,215 crore. The consultant's core question was, 'Fifteen years into entrepreneurship, he has yet to record a single profitable financial year—so remind me again why we celebrate him?' Responding to a post, Kunal Shah agreed with the premise that profitability is important, and stated, 'Absolutely correct. We should be celebrating 1000s of entrepreneurs who have created very profitable companies without external capital.' However, he quickly moved to the broader definition of entrepreneurial success, emphasizing that 'We should celebrate everyone who is taking risk in life and being an entrepreneur cause in the post AI world being job seeker is going to be more risky. Kunal Shah's response to the post He further asserted 'We need more job creators.' After Cred's launch in 2018, it has since become one of most talked-about fintech startups of India. The company is famous for its unique approach to financial management, specifically for rewarding users for paying their credit card bills on time. The post triggered mixed reactions among LinkedIn users, with some defending Shah's long-term vision and impact of the firm on people's financial decisions. They also noted his role in revolutionising digital payments before UPI's dominance. Bhanu Pratap Singh, CEO of Cashcry said 'Kunal Shah has built platforms that moved India's digital payments and credit culture forward. He's generated wealth for investors, created jobs, and inspired an entire generation to dare bigger.' Another defended Shah by saying, 'Companies like Amazon and Uber bled money for years before turning profitable - his ventures might follow a similar arc.' Along with the praises, Kunal Shah was also criticised in the post as some users raised concerns about celebrating unprofitable ventures.A LinkedIn user said, 'Celebrating founders solely for valuation games without sustainable profits sets a dangerous precedent.' Another person mirrored this thought and claimed, 'Indian startup ecosystem is not as sound as it is projected and talked about, most of recent listings of Indian startups went horrendous on stock exchange.'
Mint
03-06-2025
- Business
- Mint
New HDFC credit card rules: Utility payments beyond limit to face extra charges
HDFC Bank has announced a slew of changes in its credit card transactions that include new charges on wallet loading using third party apps, online skill-based gaming transactions and utility payments beyond the specified limit. The revised charges will be applicable from July 1. 'If you load third-party wallets with more than ₹ 10,000 per month on platforms like (but not limited to) PayTM, Mobikwik, Freecharge, or Ola Money using your credit card, a 1% charge will apply,' HDFC Bank said in its communication to credit card customers. 'The charge will be applicable on the entire wallet loading spend for the month and will be capped at ₹ 4999 per month,' it said. For utility transactions, a charge of 1% will apply if you spend more than ₹ 50,000 per month using your personal credit card (consumer cards). The 1% charge will apply if you spend more than ₹ 75,000 per month using business credit cards. 'The charge will be applicable on the entire utility spend for the month and will be capped at ₹ 4999 per month,' HDFC Bank said. 'Insurance transactions won't be considered as utility transactions hence no charge will be applicable,' it said. The bank has also capped reward points on insurance transactions on its popular credit cards. While the reward points on insurance transactions has been capped at 10000 per month on Infinia and Infinia Metal credit cards, it has been fixed at 5000 per month for Diners Black, Diners Black Metal and Biz Black Metal cards. For all other cards, the limit has been fixed at 2000 per month. Marriott Bonvoy cards, however, will not have capping on reward points for insurance transactions. HDFC Bank has fixed the maximum charge per transaction for rent, fuel and education categories at ₹ 4999. 'Kindly note that the existing charge of 1% will continue to be applicable on all rent transactions, only on fuel transactions more than ₹ 15000/ ₹ 30000 per transaction and only on education transactions done via third-party apps,' it said. 'If you make payments through college/school websites or their POS (Point of Sales) machines, there will be no charges,' HDFC Bank said. 'If you spend more than ₹ 10,000 per month on platforms like (but not limited to) Dream11, Rummy Culture, Junglee Games, or MPL, a 1% charge will apply,' the bank said. 'The charge will be applicable on the entire online skill-based gaming spend for the month and will be capped at ₹ 4999 per month. No reward points will be earned on online skill-based gaming transactions,' it said. Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
Mint
16-05-2025
- Business
- Mint
Can you pay rent with a credit card? Yes—here's how in 5 Steps
As digital transactions become immensely admired in India, numerous tenants are exploring the opportunity of paying their monthly rents through credit cards. This particular method provides several benefits such as cashbacks, reward points and improved cash flow management. Still, it is crucial to acknowledge and understand the associated fees and regulatory considerations. Choose a reliable platform: Opt for a trusted rent payment service that permits you to pay your rent using your credit card. These services often offer additional benefits such as timely reminders, comfort in making payments and potential rewards. PayZapp, CRED, Freecharge etc., are some of the examples of such service providers. Complete the KYC registration process: Sign up on the chosen platform. Then complete the Know your customer (KYC) process to ensure complete compliance with required stipulations and regulations. Add your landlord details carefully: Set up your landlord as a beneficiary in your account, by adding your landlord's bank account information, including account number, IFSC code. Properly re-check the details before final submission, to avoid any errors. Enter the amount of rent: Specify the exact rent amount as per your rental agreement and click on the 'submit' option. This will help you in adding the amount of money you aspire to transfer into your landlord's bank account. Make the payment: Use your credit card to complete the transaction. Be careful of the processing fees. This particular fee generally ranges from 1% to 3% of the total rent amount and it varies from one financial institution to another. Processing fees : Most of the platforms charge a convenience fee for credit card transactions. For example, the Freecharge application charges 0.9% + GST whereas others may charge up to 2.5% + GST. The fees discussed here are illustrative in nature. For the updated details on fee charges refer to the respective website of the platform. : Most of the platforms charge a convenience fee for credit card transactions. For example, the Freecharge application charges 0.9% + GST whereas others may charge up to 2.5% + GST. The fees discussed here are illustrative in nature. For the updated details on fee charges refer to the respective website of the platform. Interest-free period : Credit cards offer an interest free period of up to 45-50 days. This provides temporary relief in cash flow management and financial planning. : Credit cards offer an interest free period of up to 45-50 days. This provides temporary relief in cash flow management and financial planning. Impact on credit score : Consistent and timely repayment of credit card dues can influence your credit score in an immensely positive way. Still, consistently high credit utilisation may have adverse effects. : Consistent and timely repayment of credit card dues can influence your credit score in an immensely positive way. Still, consistently high credit utilisation may have adverse effects. Reward exclusions: Not all credit cards provide rewards on rent payments. Some credit card issuers exclude them or provide reduced or limited discounts. That is why it is always prudent to check your credit card's terms and conditions before proceeding. Not all credit cards provide rewards on rent payments. Some credit card issuers exclude them or provide reduced or limited discounts. That is why it is always prudent to check your credit card's terms and conditions before proceeding. Regulatory oversight: While the Reserve Bank of India (RBI) has not issued any specific restrictions or prohibitions against using credit cards for P2P transactions such as rent payments. Still, all such transactions may still be flagged by banks or digital payment platforms due to concerns over credit misuse or regulatory compliance. On a holistic account all such transactions come under the broader purview of RBI's efforts to ensure responsible credit usage and reduce systemic risk in the unsecured lending space. Hence, paying rent through credit cards is a feasible option and can offer several benefits. Still, it is important to be careful of the associated fees, applicable interest rates, and regulatory landscape That is why on your part you should always ensure timely repayment to avoid interest charges and potential negative impacts on your credit score. Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
