In a massive development for the global tech industry, Meta Platforms has invested $900 million (approximately Rs 8,550 crore) into the Indian fintech startup CRED. This major investment comes as part of CRED’s Series H funding round.
Furthermore, the deal brings a shocking leadership change. CRED’s famous founder, Kunal Shah, has been appointed as the new global head of WhatsApp. He will replace Will Cathcart, who has successfully led the popular messaging platform for the last seven years.
Details of the 20 Per Cent Stake Purchase
As part of the official agreement, Meta will acquire a 20 per cent minority stake in CRED. Therefore, this massive funding round now values the Indian fintech company at a whopping Rs 43,239 crore, which translates to roughly $4.5 billion on a post-money basis.
The investment is structured carefully. It uses a calculated combination of primary and secondary share purchases to complete the deal.
Kunal Shah Moves to Meta Leadership Team
Because of this new role, Shah will step down from his position as the Chief Executive Officer of CRED. Instead, he will join Meta’s global leadership team immediately.
He takes over from Will Cathcart, who is not leaving the company but shifting focus. Consequently, Cathcart is moving into a brand-new role at Meta that focuses entirely on artificial intelligence (AI) initiatives.
The New Growth Strategy for WhatsApp
Meta stated that Shah will be responsible for guiding WhatsApp through its next major phase of global growth. Specifically, his main goals will include building new revenue streams through digital advertising and premium subscription products.
Additionally, Shah will focus heavily on integrating advanced AI agents directly into the messaging platform to improve user experience.
Interim CEO Takes Charge at CRED
Following Shah’s departure from daily operations, CRED has quickly named Miten Sampat as the interim Chief Executive Officer. Sampat is a company veteran who has successfully overseen strategy and finance at CRED since 2020.
Meanwhile, the CRED board of directors and the remaining leadership team are actively working on a permanent management structure. This planning is crucial because the company is preparing for an eventual stock market listing.
The Growth and Journey of CRED
Kunal Shah founded CRED in 2018 with a unique premise. Initially, the app focused entirely on rewarding users who paid their credit card bills on time.
However, the startup has since expanded massively into a comprehensive financial services ecosystem. Today, the platform covers digital payments, personal lending, insurance, wealth management, and curated lifestyle products.
Impressive Financial Milestones
Currently, CRED boasts over 1.7 crore monthly active members. Remarkably, the platform now handles more than 40 per cent of all credit card bill payments across India.
In addition, its thriving lending business has reached Rs 24,000 crore in assets under management for its partner financial institutions. To conclude its strong performance, CRED reported an annual revenue of around Rs 3,200 crore and officially confirmed that it has turned profitable.