New Delhi, Jun 23: Tech giant Meta will invest Rs 8,550 crore (about USD 900 million) in Indian fintech firm CRED, and has appointed its founder, Kunal Shah, as the new global head of messaging platform WhatsApp.
Shah – who will move from his operating role as CEO of CRED to join Meta’s global leadership team – succeeds Will Cathcart, who is stepping down as the head of WhatsApp after a seven-year tenure.
Cathcart will take on a new role at Meta, building new products from the ground up.
“Kunal Shah will join Meta as WhatsApp’s next leader. Kunal built CRED into one of India’s most important technology companies, and he brings the kind of builder mentality and global perspective that will serve him well in running the world’s biggest messaging app,” Mark Zuckerberg, founder and CEO of Meta, said.
Zuckerberg said he looks forward to working with Shah to continue to make WhatsApp the best service for billions of people and millions of businesses.
“While it’s come very far, the delta between WhatsApp today and its full potential is massive. I look forward to working with Mark, Chris, and the leadership across Meta for the next step in WhatsApp’s journey,” Shah said.
Meta’s Chief Product Officer, Chris Cox, had approached Shah directly while looking for a leader who grasps the global product opportunity for WhatsApp and can represent the needs of the people who rely on it every single day, Meta said.
“A prolific writer and commentator, Shah has long held strong views about how WhatsApp can become even more useful in people’s lives,” the Meta statement added.
Meanwhile, the mega investment places CRED at a valuation of Rs 43,239 crore (USD 4.5 billion). According to a statement by the fintech firm, the Series H funding round, led by Meta, is structured through a combination of primary and secondary share purchases.
Meta will join the Bengaluru-based fintech firm’s cap table as a minority investor. However, it will not receive access to CRED’s customer information.
Miten Sampat, who has headed strategy and finance for the fintech firm since 2020, will take over as interim CEO with immediate effect.
The CRED board and leadership are currently in the process of constituting the “right” leadership structure as the company works towards an eventual initial public offering (IPO), the CRED statement added.
CRED, founded in 2018, currently serves 1.7 crore monthly active members and claims to process over 40 per cent of credit card bill payments in India. It reported a reduction in operating losses to Rs 298 crore in FY25, from Rs 609 crore in FY24, on the back of product portfolio expansion.
The company’s total losses also narrowed by 11.5 per cent to Rs 1,457 crore during the fiscal. CRED saw its consolidated operating revenue grow by 16 per cent to Rs 2,735 crore in FY25.
Shah said he would continue to hold CRED employees to high standards as he prepares to join Meta to lead WhatsApp globally.
“Team CRED, I’ll still expect you to be a 10x version of yourselves. As for me, I’ll be joining Meta to lead WhatsApp globally. While it’s come very far, the delta between WhatsApp today and its full potential is massive,” Shah wrote in a post on X.
A serial entrepreneur, angel investor, and fintech founder, Shah founded CRED (a fintech platform) with a mission to catalyse financial progress for creditworthy Indians with 17 million monthly active users. His previous startup, FreeCharge, pioneered online payments in India over a decade ago.
Shah champions the startup and financial services ecosystem in India through angel investments, advisory positions, and positions in influential industry organisations. He is India’s most prolific angel investor, with investments in over 250 startups, including leading unicorns, and actively mentoring hundreds of founders.–(PTI)
