Cred To Raise 900 Million In New Funding Led By Meta Founder Kunal Shah To Step Down

The round, structured through a mix of primary and secondary share purchases, will value the Kunal Shah-founded company at Rs 43,239 crore, or about $4.5 billion, post-money. Meta will join Cred’s cap table as a minority investor and will not get access to the company’s customer information, Cred said.As part of the transaction, Shah will step away from his operating role as chief executive and move to Meta’s global leadership team, while retaining his personal shareholding in Cred. Miten Sampat, who has led strategy and finance at Cred since 2020, has been appointed interim CEO with immediate effect. The company said its board and leadership team are working on the structure required ahead of an eventual IPO.The fundraise marks a sharp change from Cred’s last round. ET had reported in June last year that Cred raised Rs 617 crore from GIC and other existing investors at a valuation of $3.5 billion, a 45% cut from the $6.4 billion at which it raised capital in 2022.Founded in 2018 as a credit card bill payments platform, Cred has since expanded into lending, insurance, wealth and other financial services. The company said it has 17 million monthly members and processes more than 40% of credit card bill payments in India. Its lending business has scaled to Rs 24,000 crore in managed assets for partner financial institutions.For FY25, Cred had reported operating revenue of Rs 2,735 crore, up 16% year-on-year, while operating loss narrowed to Rs 298 crore. Total loss stood at Rs 1,457 crore for the year.