CRED raises $900M from Meta, Kunal Shah to lead WhatsApp

Key Takeaways

• Meta invests $900 million in CRED at a $4.5 billion valuation, making it India's largest startup funding round in 2025
• Kunal Shah steps down as CRED CEO to lead WhatsApp globally, with Miten Sampat taking over as interim CEO
• CRED is now preparing for an IPO, with annual revenue crossing ₹3,200 crore

Meta has invested $900 million in fintech company CRED, valuing the Bengaluru-based startup at $4.5 billion. The deal comes with a twist: CRED founder Kunal Shah is stepping down as CEO to run WhatsApp globally.

This is the largest funding round raised by an Indian startup in 2025. The Series H investment includes both primary capital and secondary shares, making Meta a minority investor on CRED's cap table.

The valuation marks a recovery for CRED. The company raised ₹617 crore from GIC affiliate Lathe Investment earlier in 2025 at $3.5 billion, nearly 45% below its 2022 peak of $6.4 billion. This round pushes the valuation back up, though still below that high-water mark.

Why is Kunal Shah leaving CRED for WhatsApp?

Shah will retain his personal shareholding in CRED but will no longer run day-to-day operations. He's moving to Meta to lead WhatsApp, the messaging platform used by over two billion people worldwide.

“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.”

— Kunal Shah, via LinkedIn

Will Cathcart, who has led WhatsApp for seven years, will transition to a new role at Meta building products from scratch. Mark Zuckerberg praised Shah's track record, calling him someone with "builder mentality and global perspective" suited to running "the world's biggest messaging app."

Miten Sampat, CRED's strategy and finance head, takes over as interim CEO. The company's board is working on a permanent leadership structure as it prepares for an eventual IPO.

What does Meta gain from this CRED investment?

Meta has struggled with WhatsApp Pay in India. Despite launching in 2020, it trails far behind Google Pay and PhonePe in the UPI payments market. CRED processes over 40% of all credit card bill payments in India and has built a lending business with ₹24,000 crore in assets under management.

The investment could signal deeper integration between CRED's financial services infrastructure and WhatsApp's payments ambitions in India. Meta previously invested $5.7 billion in Reliance Jio in 2020, signaling its long-term bet on India's digital economy.

CRED's 17 million members skew wealthy. The platform only accepts users with credit scores above 750, creating a curated audience of high-spending consumers. That's valuable for both advertising and financial services distribution.

How has CRED's financial performance changed?

CRED's operating revenue rose 16% year-over-year to ₹2,735 crore in FY25. Losses narrowed 11.5% to ₹1,457 crore. Shah claimed annual revenue has now crossed ₹3,200 crore, though he didn't specify the period. The company hasn't yet filed FY26 financials with the Ministry of Corporate Affairs.

The startup has expanded well beyond its original credit card bill payment service. It now offers lending, insurance, wealth management, and commerce. Shah noted the company has reached profitability and holds a "full stack of licences."

“I started CRED in 2018 with a belief that creditworthiness deserves to be rewarded. In under eight years, that belief has turned into a new category: millions of members, ₹3,200 Cr in revenue, profitability, a full stack of licences and a strong brand.”

— Kunal Shah

When will CRED go public?

CRED's statement says the board and leadership are "in the process of constituting the right leadership structure towards eventual IPO." No timeline was announced. The fresh capital will go toward building institutional capabilities and expanding across categories.

The IPO push comes at a moment of leadership transition. Whether the public markets will accept a company with new leadership and still-substantial losses remains to be seen. Miten Sampat's ability to maintain momentum during the interim period will be critical.

Frequently Asked Questions

How much did Meta invest in CRED?

Meta invested $900 million (approximately ₹8,550 crore) in CRED's Series H funding round, valuing the company at $4.5 billion post-money.

Why is Kunal Shah leaving CRED?

Shah is stepping down as CEO to lead WhatsApp globally at Meta. He will retain his personal shareholding in CRED but will no longer run daily operations.

Who is the new CEO of CRED?

Miten Sampat, CRED's strategy and finance head, has been appointed interim CEO while the board finalizes a permanent leadership structure.

Is CRED profitable?

Kunal Shah claims CRED has reached profitability with ₹3,200 crore in annual revenue. In FY25, the company reported ₹2,735 crore in operating revenue with losses of ₹1,457 crore.

When will CRED IPO?

CRED has announced plans to go public but hasn't set a specific timeline. The board is currently working on the leadership structure needed for an eventual IPO.

Source: Inc42 Media / Lokesh Choudhary