Meta will invest $900 million in the Indian fintech startup CRED and appoint its founder, Kunal Shah, as the new head of WhatsApp, the companies said Monday. Shah will replace Will Cathcart, who has led the messaging app for the past seven years.
Mark Zuckerberg said on Facebook that Shah “built CRED into one of India’s most important technology companies” and that he brings “a builder’s mindset and a global perspective” that will serve him well running “the world’s largest messaging app.” Cathcart is expected to remain at Meta, where he will work on using AI tools to develop apps and consumer products.
CRED’s platform rewards users for paying credit card bills and other bills on time, while also providing analysis of spending habits. The company says it has 17 million monthly active users.
Meta’s investment will give it a 20% stake in CRED at a post-money valuation of $4.5 billion. Shah said he founded CRED in 2018 to reward responsible financial behavior, and that in less than eight years it has grown into “a new category” with millions of members, $325 million in revenue, profitability and a strong brand.
