Meta Platforms is investing $900m in Indian fintech company Cred in a deal that values the business at $4.5bn, while Cred founder and CEO Kunal Shah exits to head WhatsApp.
The transaction, worth Rs85.50bn ($902.7m), includes both newly issued shares and secondary share purchases.
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Following the deal, Cred’s post-money valuation is Rs432.39bn ($4.5bn), compared with a pre-money valuation of Rs388.19bn ($4.11bn).
Meta will take a minority stake in the company and, under the agreement, will not have access to Cred’s customer data.
Cred said the Series H funding will be used to support expansion plans, build organisational strength and widen its footprint across its business lines.
The investment also brings Meta onto Cred’s shareholder register as the company pushes ahead with growth plans and works towards a future initial public offering.
The investment comes alongside a leadership change at both Cred and WhatsApp.
Will Cathcart, who has run WhatsApp for the past seven years, is stepping down.
In a Facebook post, Meta CEO Mark Zuckerberg announced Shah’s appointment, saying: “Kunal built Cred into one of India’s most important technology companies, and he brings the kind of builder mentality and global perspective that will serve him well in running the world’s biggest messaging app.”
Shah will continue to hold his personal stake in Cred after leaving his executive role.
Cred has named Miten Sampat, who has overseen strategy and finance at the company since 2020, as interim chief executive with immediate effect.
Established in 2018, Cred provides services spanning payments, lending, insurance, wealth and lifestyle offerings.
The company says its platform reaches 17 million members each month and handles more than 40% of credit card bill payments in India.
Its lending arm has grown to Rs240bn in managed assets under management for partner financial institutions.
