Meta Platforms has invested $900 million, approximately Rs 8,550 crore, in CRED as part of the startup’s Series H funding round. As part of the same deal, CRED founder Kunal Shah has been appointed the new head of WhatsApp, succeeding Will Cathcart, who has led the messaging platform for seven years.
Meta Picks Up 20 Per Cent Stake In CRED
Under the terms of the agreement, Meta will acquire a minority stake of roughly 20 per cent in CRED. The investment values the company at Rs 43,239 crore, or around $4.5 billion, on a post-money basis. The funding is a combination of primary and secondary share purchases.
Shah will step down as Chief Executive Officer of CRED and join Meta’s global leadership team. He will take over from Cathcart, who is moving into a new role focused on artificial intelligence initiatives.
Meta said Shah will be responsible for leading WhatsApp through its next stage of growth, with an emphasis on building out revenue through advertising and subscription products, as well as integrating AI agents into the platform.
Following Shah’s departure from the day-to-day running of the company, Miten Sampat, who has overseen strategy and finance at CRED since 2020, has been named interim Chief Executive Officer with immediate effect. CRED said its board and leadership team are working on a permanent management structure as the company prepares for an eventual stock market listing.
Founded in 2018, CRED initially focused on rewarding users who paid their credit card bills on time. It has since grown into a broader financial services platform covering payments, lending, insurance, wealth management and lifestyle products.
The company said it now has 1.7 crore monthly active members and handles more than 40 per cent of India’s credit card bill payments. Its lending business has reached Rs 24,000 crore in assets under management for partner financial institutions. CRED also reported annual revenue of around Rs 3,200 crore and said it has turned profitable.