Meta has led a $900 million investment in Indian fintech unicorn Cred, which has valued the firm at over $4 billion. In addition to the big investment, the company also announced a significant leadership change, with its founder and CEO Kunal Shah joining WhatsApp as a senior leader.
Key Highlights
- Meta leads $900 million investment in Cred, valuing the Indian fintech startup above $4 billion.
- Cred founder Kunal Shah joins WhatsApp leadership, marking a major transition for fintech giant.
The financing is one of the biggest capital raises in India's fintech industry this year and now makes Meta a minority investor in Cred. The proceeds will be applied to "speed up growth, build institutional strength and create a footprint in various financial services verticals," the company said.
Established in 2018, Cred has established a solid foothold among affluent and creditworthy consumers by providing incentives and financial services to credit card bill payments. The platform says it enables over 40% of all credit card bill payments in India, and has slowly begun to venture into lending and other financial products.
Meta Deepens India Fintech Bet
Meta's investment follows the company's efforts to solidify its foothold in India's digital financial landscape. Though WhatsApp is one of the most popular messaging apps in India with hundreds of millions of users, its payments service has been subjected to heavy competition from the existing UPI providers.
In the contract, Cred confirmed that Meta will not have access to the customer/member information. Rather, the partnership is likely to involve strategic collaboration and future growth opportunities.
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Kunal Shah joins WhatsApp
In a significant development, Kunal Shah will leave his operational role at Cred to join WhatsApp in a leadership position, succeeding current WhatsApp chief Will Cathcart.
Speaking of the announcement, Shah stated, "WhatsApp has a lot of potential to be tapped, despite its size and usage. His appointment is likely to give a boost to Meta's push for commerce, payments and business services on the messaging platform."
Shah's move is seen as a significant acquisition for Meta, given his experience of creating successful consumer internet businesses and growing fintech companies with India.
Interim Leadership and IPO Plans
Shah's successor as interim CEO will be Miten Sampat, a former strategy and finance head at Cred. The company also said it will start looking into a future long-term leadership structure as it prepares for a potential public IPO in the future.
Despite its rapid growth and large user base, Cred has yet to consistently report profitability. However, Shah recently stated that the company recorded its first profitable quarter, signaling progress toward sustainable growth.
Meanwhile, Cred is in a new phase of expansion with new capital, the backing of Meta and an eventual IPO roadmap, as its founder heads for a high-profile role within one of the world's largest technology companies.
