Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has reportedly held discussions in recent weeks to invest in fintech unicorn Cred at a valuation of approximately $4 billion (around Rs 38,000 crore), according to multiple sources familiar with the matter.
The proposed valuation represents a modest increase from Cred’s marked-down valuation of $3.5 billion in 2025. However, it remains significantly lower than the $6.4 billion valuation the Bengaluru-based startup achieved during its last major funding round in 2022.
Sources indicated that Meta has explored investing tens of millions of dollars as primary capital in Cred. At the same time, the technology giant has reportedly evaluated alternative strategic options, including a full acquisition of the company at a lower valuation and a potential operating role for Cred founder Kunal Shah within the organisation.
“Which path Meta ultimately chooses remains unclear. What is evident, however, is that Cred is in need of fresh capital, and Meta has expressed a willingness to back the company,” one of the people familiar with the discussions said.
Meta’s interest in Cred aligns with its broader ambition to establish a stronger position within India’s rapidly growing digital payments ecosystem. Through such a partnership, Meta could potentially integrate multiple layers of its consumer ecosystem. Facebook and Instagram could serve as discovery platforms; WhatsApp could facilitate commerce and conversational transactions, while Cred could provide payment infrastructure and financial services capabilities.
Currently, Meta and Cred already compete in India’s Unified Payments Interface (UPI) market through WhatsApp Pay and Cred Pay. Despite significant investments and expansion efforts, both platforms have struggled to gain substantial market share in a highly competitive payments landscape.
India’s UPI network remains the largest real-time payment system globally, processing more than 23 billion transactions worth over $300 billion every month. The market, however, remains heavily concentrated among a handful of dominant players.
Industry data shows that Walmart-owned PhonePe and Google Pay collectively account for nearly 80% of UPI transactions. Meanwhile, platforms such as WhatsApp Pay, Cred, and Amazon Pay continue to hold less than 1% individual market share, with their combined share remaining below 2%.
Founded in 2018 by Kunal Shah, Cred focuses on affluent, financially responsible, and creditworthy consumers. Over the years, the company has expanded beyond credit card bill payments into lending, commerce, wealth management, and financial services.
The fintech company reported consolidated operating revenue of Rs 2,735 crore in FY25, representing a 16% increase compared to the previous financial year. During the same period, Cred reduced its operating losses by 51% to Rs 298 crore, according to a company statement released in January. The company has yet to file its audited FY25 financial results with the Ministry of Corporate Affairs (MCA).
Cred also improved several key operating metrics during FY25. Total losses declined 11.5% year-on-year to Rs 1,457 crore, while gross margins reached approximately 70%, reflecting stronger operating leverage and improved monetisation across its product portfolio.
User engagement on the platform continued to rise. Monthly transacting users increased 14.5% to 1.26 crore, while transaction frequency grew 34% to 14.4 transactions per user each month. Additionally, the total payment value processed through the platform climbed 23% year-on-year to Rs 8.5 lakh crore.
The company attributed much of this growth to deeper product adoption among existing users. Around 45% of active members used three or more products across the platform. Cred reported an average revenue per user (ARPU) of Rs 2,000, which it claims is the highest within India’s payments ecosystem. Users engaging with four or more products generated 75% higher ARPU compared with the platform average.
Since its launch, Cred has raised nearly $1 billion from prominent global investors, including Tiger Global, Ribbit Capital, Peak XV Partners, Greenoaks Capital, and DST Global, among others.
For Meta, an investment in Cred would represent another strategic bet on India’s technology ecosystem. The company has previously backed high-growth startups such as Meesho and Unacademy as part of its broader effort to expand its presence in one of the world’s largest digital consumer markets.
If the proposed transaction materialises, it could emerge as one of the most significant fintech investments in India this year, while potentially reshaping competition within the country’s digital payments and financial services landscape.
