Latest news with #KunalShah
Mint
06-07-2025
- Business
- Mint
From Freecharge to CRED: Kunal Shah responds to LinkedIn post questioning his loss-making startups — 'We need more...'
CRED's Kunal Shah on Saturday responded to a LinkedIn post which questioned 'why we celebrate the entrepreneur' even when his startups gave mounting losses and zero profitability over 15 years. Shah, known for co-founding Freecharge and later CRED, gave his insights on the ongoing debate about the metrics of entrepreneurial success, particularly in India's growing startup ecosystem. The discussion started after a LinkedIn user Adarsh Samalopanan, who identified himself as senior consultant of Deloitte, pointed at the poor financial performance of Shah's ventures so far. The consultant's post highlighted that Freecharge, founded in 2010, earned ₹ 35 crore by 2015 but incurred a significant loss of ₹ 269 crore. Snapdeal later acquired Freecharge for ₹ 2,800 crore, only for Axis bank to purchase it for ₹ 370 crore, which is a mere 14% of its earlier valuation. Similarly the post noted that Cred, launched in 2018 has earned ₹ 4,439 crore after almost seven years in business, however it still reported a loss of ₹ 5,215 crore. The consultant's core question was, 'Fifteen years into entrepreneurship, he has yet to record a single profitable financial year—so remind me again why we celebrate him?' Responding to a post, Kunal Shah agreed with the premise that profitability is important, and stated, 'Absolutely correct. We should be celebrating 1000s of entrepreneurs who have created very profitable companies without external capital.' However, he quickly moved to the broader definition of entrepreneurial success, emphasizing that 'We should celebrate everyone who is taking risk in life and being an entrepreneur cause in the post AI world being job seeker is going to be more risky. Kunal Shah's response to the post He further asserted 'We need more job creators.' After Cred's launch in 2018, it has since become one of most talked-about fintech startups of India. The company is famous for its unique approach to financial management, specifically for rewarding users for paying their credit card bills on time. The post triggered mixed reactions among LinkedIn users, with some defending Shah's long-term vision and impact of the firm on people's financial decisions. They also noted his role in revolutionising digital payments before UPI's dominance. Bhanu Pratap Singh, CEO of Cashcry said 'Kunal Shah has built platforms that moved India's digital payments and credit culture forward. He's generated wealth for investors, created jobs, and inspired an entire generation to dare bigger.' Another defended Shah by saying, 'Companies like Amazon and Uber bled money for years before turning profitable - his ventures might follow a similar arc.' Along with the praises, Kunal Shah was also criticised in the post as some users raised concerns about celebrating unprofitable ventures.A LinkedIn user said, 'Celebrating founders solely for valuation games without sustainable profits sets a dangerous precedent.' Another person mirrored this thought and claimed, 'Indian startup ecosystem is not as sound as it is projected and talked about, most of recent listings of Indian startups went horrendous on stock exchange.'
Time of India
19-06-2025
- Business
- Time of India
Zerodha CEO Nithin Kamath goes for Credit Check on Zerodha Capital, sends message to Cred CEO Kunal Shah
Zerodha CEO Nithin Kamath recently revealed that his credit score 747 isn't 'good enough' to qualify for CRED, the elite credit rewards platform founded by Kunal Shah. For those unaware, Cred is known for its exclusive platform, which typically requires users to have a credit score of 750 or higher to access its rewards and services. The Zerodha CEO posted a screenshot on X (formerly known as Twitter) revealing his credit found and CEO Kunal Shah was also quick to respond to Kamath's post. Zerodha CEO Nithin Kamath fails Cred test Recently, Zerodha CEO Nithin Kamath took to X to share a screenshot of his credit score using Zerodha Capital . In his post he also tagged Cred co-founder and CEO Kunal Shah. 'I did a credit check on @zerodhacapital to check out the flow, and my score is 747. So I am not good enough for @CRED_club , @kunalb11 ,' wrote Kamath. Kamath also informed users that they can check their credit score in some simple steps using Zerodha Capital. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo Cred CEO Kunal Shah responded to Zerodha CEO Nithin Kamath's credit score Cred founder and CEO Kunal Shah was also quick to respond to Kamath's query. 'I'll call you and help you fix it. Glad you're caring about scores and increasing awareness. More people need to do this :),' replied Shah. 'Haha, welcome to the "747 Club", Nithin!…' commented users The exchange sparked a wave of reactions online—from users flaunting higher scores to others questioning the rigidity of India's credit rating systems . 'Haha, welcome to the "747 Club", Nithin!Not high enough for CRED, but perfect for domestic flights!On a serious note, we've got the Ultimate Credit Score Guide posted on the TF Community - your shortcut to cracking that 800+ zone (no secret handshakes required),' commented a user. 'I think you took a loan and missed a payment, which is why your credit score is not eligible for a personal loan with a low interest need to improve your credit score—maybe consult Instagram financial influencer,' posted another user. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hans India
15-06-2025
- Business
- Hans India
Indian startups raise $184.75 million this week
New Delhi: Indian startups continued to attract investor interest as 20 startups raised around $184.75 million in funding this week. The deals included five growth-stage and 14 early-stage startups, while one startup chose not to disclose its funding details. Seed funding dominated the funding types this week, with several startups raising capital in their early journey. Other rounds included Series A, pre-seed, pre-Series A, and even late-stage funding rounds like Series G. The startup activity was also spread across cities. Bengaluru led with nine deals, followed by Delhi-NCR with five. Mumbai, Kolkata, and Chennai also saw their startups securing investments. Sector-wise, fintech startups emerged at the top with six funding deals. Deeptech and OTT sectors followed with two deals each, while other sectors such as aerospace, foodtech, e-commerce, and sportstech also saw positive movement. Among the key highlights of the week was fintech unicorn CRED, led by Kunal Shah, which secured $72 million from investors, including Lathe Investment, RTP Global, Sofina Ventures, and QED Innovation Labs. FlexiLoans, a fintech platform focused on MSMEs, also raised $44 million in its Series C round, while EV component startup Vecmocon raised a total of $18 million in its Series A round, with $8 million coming in this week through both primary and secondary transactions. Other notable deals came from the popular QSR chain 'Wow! Momo' and drone technology startup Garuda Aerospace, both of which received fresh investments. On the early-stage front, 13 startups raised a total of $49.75 million. The biggest among them was aerospace and defence startup Sanlayan Technologies, which raised $22 million. Other early-stage startups that received funding include wealth tech firm PowerUp, fintech players Piston and Zype, and OTT platform FlickTV. Earlier this week, Commerce and Industry Minister Piyush Goyal said there has been a surge in private investments in the last 11 years, with Indian startups and emerging entities attracting significant private funding to the tune of over $150 billion in the past decade.
Entrepreneur
13-06-2025
- Entertainment
- Entrepreneur
Actor Sanya Malhotra Enters Wellness Sector with Launch of BREE Matcha
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. In a strategic move that marks her debut as an entrepreneur, Bollywood actor Sanya Malhotra has joined hands with wellness industry's Dr. Kunal Shah and Siddharth Shah—founders of Essenzaa Nutrition—to launch BREE Matcha, a lifestyle brand rooted in traditional Japanese tea culture. The announcement, detailed in a press release by BREE Matcha, positions the brand at the intersection of ancient rituals and modern Indian wellness habits. BREE Matcha introduces three core products—Everyday Matcha, Ceremonial Matcha, and a Ceremonial Matcha Kit—sourced directly from Kagoshima, Japan. The brand is built on the foundation of matcha's reputed benefits, including sustained energy, improved focus, and antioxidant support, without the side effects typically associated with caffeine consumption. The products also reflect Essenzaa Nutrition's 14-year track record in clean-label, clinically supported wellness formulations. For Malhotra, the project stems from personal experience. "At a time when everything feels urgent, BREE Matcha is my personal reminder to slow down and be intentional," she said. The actor, known for her offbeat roles and grounded public image, shared that adopting matcha into her daily routine helped her find calm amid the chaos of a demanding career. The collaboration took root when Malhotra's growing affinity for matcha intersected with Essenzaa's exploration into functional superfoods tailored to Indian consumers. What began as a casual conversation evolved into a brand that seeks to offer more than just a beverage. "We wanted to introduce a product that aligns with both health and lifestyle," said Dr. Kunal Shah. "BREE is not just about energy, it's about how you choose to show up in your day." Essenzaa Nutrition, which exports wellness products to over 23 countries, sees BREE as a natural evolution in its mission to offer thoughtful health solutions. Siddharth Shah, co-founder of the company, emphasized the cultural and behavioral aspect of the initiative. "BREE Matcha is not just a beverage—it's a movement towards conscious consumption and modern wellness," he said. "Our vision is to make matcha a part of everyday rituals for the new-age Indian consumer."
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Business Standard
10-06-2025
- Business
- Business Standard
Cred's valuation slump signals caution for India's fintech companies
Fintech player Cred's recent fundraise of $75 million has come at a sharp reset of its valuations — signalling that the exuberance in the sector is coming down. After the fundraise, the firm's valuation has gone down to $3.5 billion, a fall of 45 per cent from the $6.4 billion in 2022. Valuations have fallen even as existing investors put money in the company, including Kunal Shah, founder and chief executive officer (CEO), Cred. 'Between 2022 and now, there has been a reset in the fintech market, both domestically and internationally. We have seen valuations come down and that is evident in the Cred fundraise. It will be fair to say that the market is much more realistic now,' said a person in the know. 'When Cred made its entry, it genuinely had a different offering. But now, it has also got into credit. How is it different from any other fintech? There is not much innovation there. If you look at the credit segment (personal loans), almost all the fintechs have a write-off in the range of 12-13 per cent. I don't think Cred will be any different,' said an investor when asked why the firm has seen its valuation drop so low. Another head of a fintech-focused fund said that valuation fall is normalisation happening in the sector. 'There is a realisation that the situation is not where it was or when it started. And, gone are the days when people said fintechs have no speed breaks, no hurdles…that has been proven wrong,' he said. This is evident in the numbers too. The fintech sector has raised a total of $4.5 billion so far (year-to-date or YTD), down 29 per cent compared to $6.4 billion raised in the same period last year. Cred is not the only player in the fintech ecosystem that is seeing this markdown. Earlier this year, when Fullerton Financial Holdings acquired a controlling stake in Lendingkart, the latter's valuation came down to $100 million from $821 million in December 2024, according to data from Tracxn. The trend of discount to valuation has impacted the non-fintech segment too. Recently, when Udaan closed its funding at $114 million, it did so at a flat valuation of $1.8 billion. The sector has also been impacted by regulatory changes that the central bank has introduced in recent times. This includes norms such as digital lending guidelines (DLGs), first loss default guarantee (FLDG), and increased risk weights for unsecured personal loans. In the case of Cred, it looks like the firm has chosen to raise funds at a lower valuation as it looks at expanding product portfolio and reach. 'Cred has been focused on reducing profits and being earnings before interest, taxes, depreciation and amortisation (Ebitda) positive as it wants to reduce cash burn. By opting to raise funds at a lower valuation, it is a clear signal that it is chasing strong growth,' said another source. The company — over the past 18 months — has focused on launching products and offerings. In February, it announced a suite of products under the Savlbard brand, including a credit line against mutual funds (MFs). It also included a tool to predict and improve customers' credit scores, and a non-profit entity called Cred Foundation aimed at financial literacy. Cred is also among the earliest players to launch Cred eRupee wallet in beta mode. The company also entered the insurance space through its vehicle management platform Cred Garage. New product launches and services have also seen an improvement in the financial performance of the company. For FY24, it managed to reduce losses to Rs 609 crore from Rs 1,024 crore in FY23. According to filings, Cred raised this fund in a series-G round from Singapore's GIC, along with RTP Capital and Sofina. 'At the early stage, you're often investing in a promise — a large market, a potential business model, and the assumption that if it works, it will work big,' said an investor about Cred's valuation reduction. He added, 'But as companies mature, valuations need to start reflecting business fundamentals. The gap between promise and performance can't stay wide forever.' 'I don't know about the company (CRED) specifically and cannot comment with authority on the reasons. However, I do not see anything wrong with companies raising money at lower valuation than earlier. This is largely happening in the industry because of reset in valuation multiples from the peak of Covid times,' said Ashish Kumar, co-founder and general partner, Fundamentum, the venture capital (VC) firm led by Nandan Nilekani 'Valuation multiples reflect investors sentiment on industry or company growth, broader liquidity, higher competition amongst a host of other factors. The fintech sector and many other relatively mature tech sectors indeed have profitability expectations and it is good for the ecosystem,' said Kumar.
