Indian fintech company Cred will raise… $The company on Monday announced it has secured Rs 8,550 crore (about $900 million) from Meta, as Cred founder Kunal Shah steps down as CEO to take over as global head of Meta’s WhatsApp.
With new capital, a new interim chairman, and a clear nod toward a stock market listing, Cred is on track to show whether or not it’s built to outlast its lifespan. founder.
Kunal Shah’s new role
Shah, who founded Cred in 2018 around the simple premise that creditworthiness should be rewarded, said the company has grown in eight years into something more sustainable.
“In less than eight years, this belief has transformed into a new group: millions of members, ~ $3,200 crore revenue, profitability, full suite of licenses and strong branding, he said. Accreditation statement.
“I stand back with gratitude and conviction that the team will continue to raise the bar,” he said. Shah, who will replace Will Cathcart at WhatsApp, will retain his personal stake in WhatsApp Credibility even as he moves away from operations.
He posted a long post on X detailing his trip as well. In it, he said, “My commitment does not change. Only the role.”
He also wrote: “Team CRED, I still expect you to be 10x versions of yourselves.”
New money, lead investor
Meta’s investment is structured as a combination of seed capital and secondary equity purchases from existing investors, giving Meta a minority stake of approximately 20% in Cred. This means Cred’s post-cash valuation is $4.5 billion. The Indian company said Meta will not hold a seat on the board and will not have access to Cred customer data.
The Series H infusion will boost Cred’s plans to accelerate growth. PeakXV Partners CEO Shailendra Singh, who supported Cred at the founding stage, said the company had “created a category, amassed millions of highly engaged users, and built a sound economic engine,” and expressed confidence that it would “go from strength to strength in the coming years.”
Meta’s investment in Cred is the latest in a series of big bets the company has made on India, one of its most important strategic markets and the largest single country for WhatsApp. In 2020, Meta invested $5.7 billion in Jio Platforms, acquires a 10% stake, as part of a drive to expand commerce on WhatsApp. Reliance is also set to go public.
Meta’s India focus is also evident in why Chris Cox, Meta’s chief product officer, approached Shah, the company said. Cox was specifically looking for an entrepreneur “from a country where WhatsApp already has a strong foothold.”
Sampat takes the helm
Mitin Sampat, who has led Cred’s strategy and finance segments since 2020, has been appointed interim CEO with immediate effect.
The Board is simultaneously reviewing the company’s broader leadership structure, with the stated goal of preparing Cred for an eventual public market listing. “1.7 lakh crore creditworthy Indians trust CRED to improve their relationship with money,” Sampat said.
He added, “We have a generational opportunity to build on Kunal’s vision and continually move toward becoming a public company. I’m excited to move CRED forward into its next chapter. We’re just getting started.”
Listed IPO
The listing signal comes at a moment when the numbers are moving in a positive direction for Cred. It reported consolidated operating income of $2,735 crore in FY24-25, up 16% over the previous year, with a gross margin of around 70% and operating losses reduced by 51% to $298 Crores.
Shah also pointed out the current revenue figure of approx $3,200 crore along with profitability, indicating a continuation of the trajectory in the current financial year.
Cred processes over 40% of credit card bill payments in India and its lending book has grown to $Rs 24,000 crore in AUM. The platform has 1.7 crore monthly active users, drawn exclusively from individuals with high credit ratings. She says this positioning has allowed her to have the highest average revenue per user in India’s payments ecosystem.
The IPO ambition places Creed among a broader wave of new-age Indian startups moving towards a public listing. Meta investing clearly paves the way for this. Shah’s previous startup, FreeCharge, which pioneered online mobile payments, was acquired by Snapdeal and later Axis Bank.
