CRED Expands Insurance Offerings with Acko Partnership on CRED Garage

CRED has expanded its vehicle management platform, CRED Garage, by partnering with Acko Insurance, marking its fourth insurance collaboration alongside Zurich Kotak, Go Digit, and ICICI Lombard.

CRED Garage, launched in 2022, allows users to manage vehicle expenses, track renewals, and monitor documents. The platform now includes services like vehicle pick-up for claims and discounts for high-credit-score users, rewarding responsible financial habits. With over 7 million vehicles managed by 4.4 million users, CRED Garage is free, generating revenue through insurance policy commissions. The insurance vertical ranks among CRED’s top revenue sources, aligning with its strategic focus on expanding insurance offerings to financially responsible users.

CRED Garage’s features, including its “Glovebox” document repository, simplify vehicle ownership by allowing users to monitor essential records. Akshay Aedula, CRED’s Head of Product, highlights the user need for accessible vehicle management. CRED has seen 93% of its platform insurance purchases in comprehensive policies, reflecting a preference for full coverage among its financially responsible users. The platform has also helped users identify expired insurance policies, further driving renewals and user engagement.

Insurance contributes significantly to CRED’s revenue, alongside payments and lending, comprising 90% of its total income. Operating under an IRDAI corporate agency license, CRED can partner with up to nine insurers without needing a brokerage license. Focused on partnerships that align with its user base, CRED avoids high-volume insurer affiliations. Founded with substantial venture funding, CRED reported Rs 2,473 crore in FY24 revenue, serving 13 million monthly users, with 11 million active in regular transactions.