Meta Invests $900 Million in Cred, Appoints Founder Kunal Shah as New WhatsApp Head
Meta Platforms has invested $900 million (approximately Rs 8,550 crore) in Indian fintech company Cred, acquiring a 20% stake and valuing the firm at $4.5 billion. The investment comes alongside the appointment of Cred founder Kunal Shah as the new head of WhatsApp, replacing Will Cathcart.
Shah will step away from day-to-day operations at Cred but will remain a shareholder. Miten Sampat, who has led strategy and finance at Cred since 2020, will serve as interim chief executive. Shah will relocate to Meta's California headquarters to lead WhatsApp, which has over 600 million users in India, its largest market.
Will Cathcart, who has led WhatsApp since 2019, will move to a new role within Meta focused on building new products. Meta CEO Mark Zuckerberg stated that Shah brings a builder mentality and global perspective suited for running the world's biggest messaging app.
The investment in Cred, through a mix of primary and secondary share purchases, marks a significant bet on India's fintech ecosystem. Meta will remain a minority investor and will not have access to Cred member data, the company said.
Cred, founded in 2018, started as a rewards platform for credit card bill payments and has expanded into lending, insurance, wealth management, and commerce. The company claims over 17 million monthly active members, manages a Rs 24,000-crore lending assets book, and generates annual revenue of about Rs 3,200 crore. It recently posted its first profitable quarter and is working towards a potential IPO.
Meta has been expanding WhatsApp's role in India beyond messaging, adding UPI payments, metro ticketing, bill payments, and mobile recharges. WhatsApp Pay now processes over 150 million monthly UPI transactions, though it holds only about 0.65% market share, far behind PhonePe and Google Pay, which together account for nearly 79% of UPI transactions.
Business messaging has become a key growth engine for Meta, with paid messaging services crossing a $2-billion annualised run rate in the December 2025 quarter. The company is also pushing AI tools for businesses on WhatsApp to automate customer interactions.
However, Meta's India operations face legal scrutiny. Earlier this year, the Supreme Court warned WhatsApp and its parent company against sharing user data for targeted advertising, stating that citizens' privacy rights cannot be compromised for commercial interests. The court indicated it could prohibit such practices if adequate safeguards are not implemented.
