Key facts
- Meta is investing $900 million in Indian fintech startup Cred.
- Cred is now valued at $4.5 billion post-money.
- Kunal Shah, founder of Cred, will become the new leader of WhatsApp.
- Will Cathcart, the current head of WhatsApp, is moving to a new role at Meta.
- Meta will acquire a roughly 20% stake in Cred.
Meta Platforms is investing $900 million in Indian fintech startup Cred, a move that will also see Cred's founder, Kunal Shah, take over as the new global leader of WhatsApp. The investment values Cred at $4.5 billion post-money, with Meta acquiring a roughly 20% stake.
As part of the transaction, Shah will step down from his operational role as CEO of Cred and join Meta's global leadership team. He will retain his personal shareholding in Cred. Will Cathcart, who has led WhatsApp for approximately seven years, will transition to a new role within Meta focused on developing consumer apps and products using artificial intelligence tools.
Cred, founded in 2018, rewards users for timely credit card bill payments and has expanded into lending, insurance, and wealth management. The company reports 17 million monthly members and processes over 40% of credit card bill payments in India. Its lending business manages Rs 24,000 crore in assets for partner financial institutions.
Meta's investment is part of its strategy to bolster its presence in India, a key market for WhatsApp. The tech giant previously invested $5.7 billion in Jio Platforms in 2020. Shah, described by Meta's Chief Product Officer Chris Cox as "one of India’s most respected entrepreneurs," will relocate to Meta's headquarters in Menlo Park, California.