New Delhi: Fintech platform CRED on Monday said it will raise Rs 8,550 crore in a funding round led by Meta, a mega deal that will see its founder Kunal Shah step down as Chief Executive Officer and lead the global tech giant’s messaging platform WhatsApp.
Shah will transition to the global leadership team at Meta but will retain his personal shareholding in CRED, the Bengaluru-headquartered company said in a statement.
Taking to social media platform X, Shah said, “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.”
“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. I look forward to working with Kunal to continue to make WhatsApp the best service for billions of people and millions of businesses,” Meta CEO Mark Zuckerberg wrote on Facebook.
Following the leadership change, Miten Sampat, who has headed strategy and finance for the company since 2020, has been appointed as the interim CEO with immediate effect.
“CRED will raise Rs 8,550 crore (~USD 900 million) in its Series H round led by Meta, as part of its acceleration plans, structured through a combination of primary and secondary share purchases. CRED will raise this round at a post-money valuation of Rs 43,239 crore (USD 4.5 billion) and a pre-money valuation of Rs 38,819 crore (USD 4.03 billion). Under the terms of the investment, Meta will join the CRED cap table as a minority investor and will not receive access to CRED customer information,” the company said.
The fresh capital will be utilised to accelerate growth, build institutional muscle, and extend CRED’s leadership across categories.
“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, (about) Rs 3,200 crore in revenue, profitability, a full stack of licences and a strong brand. On this foundation, with additional capital and an extraordinarily talented team, CRED is poised to become an enduring institution for decades to come. I’m stepping back with gratitude and with conviction that the team will keep raising the bar,” Shah said.
CRED currently claims to process over 40 per cent of credit card bill payments in India, with 1.7 crore members engaging with the platform monthly. Its lending business has grown to Rs 24,000 crore in assets under management.
PTI
