Key facts
- Meta is investing $900 million in Indian fintech startup Cred.
- Kunal Shah, founder of Cred, will become the new global leader of WhatsApp.
- Will Cathcart is stepping down as head of WhatsApp to take a new role at Meta.
- Meta's investment gives it a roughly 20% stake in Cred, valuing the company at $4.5 billion post-money.
- Cred rewards users for timely credit card payments and has expanded into lending and wealth management.
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, retaining his personal shareholding. 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.
Meta's investment is part of its strategy to bolster its presence in India, a key market for WhatsApp. Shah will relocate to Meta's headquarters in Menlo Park, California.