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Meta explores investment in Cred at $4 billion valuation: Report
Social media giant is also said to have evaluated acquisition options and a potential operating role for Kunal Shah.
MUMBAI: A potential deal could be on the cards in India’s fintech sector, with Meta reportedly in discussions to invest in Bengaluru-based fintech firm Cred at a valuation of around $4 billion, according to a report by Moneycontrol.
Citing multiple people familiar with the matter, the report said Meta has, over the past few weeks, explored investing tens of millions of dollars in Cred as primary capital. The proposed valuation is slightly above Cred’s marked-down $3.5 billion valuation in 2025, but remains well below the $6.4 billion valuation the company commanded during its last major funding round in 2022.
According to the report, Meta has also examined alternative strategic options, including a full acquisition of Cred at a lower valuation and the possibility of bringing Kunal Shah into the organisation in an operating role. The report noted that it remains unclear which route Meta may ultimately pursue.
“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 source told Moneycontrol.
The reported interest comes as Meta seeks to strengthen its presence in India’s rapidly expanding digital payments ecosystem. Industry observers see strategic logic in a potential partnership, with Meta already controlling major consumer platforms such as Facebook, Instagram and WhatsApp. A deal with Cred could provide the payments infrastructure layer that complements Meta’s broader commerce ambitions.
Despite operating in the same digital payments landscape through WhatsApp Pay, both companies remain relatively small players in India’s Unified Payments Interface (UPI) market. The segment continues to be dominated by PhonePe and Google Pay, which together account for nearly 80 per cent of all UPI transactions. Other players, including WhatsApp Pay, Cred and Amazon Pay, each hold less than 1 per cent market share, according to the report.
Since its launch, Cred has raised nearly $1 billion from investors including Tiger Global Management, Ribbit Capital, Peak XV Partners, Greenoaks Capital and DST Global.
If the investment materialises, it would mark another significant bet by Meta on India’s startup ecosystem, following its earlier investments in Meesho and Unacademy. For Cred, fresh capital could provide additional firepower as it looks to deepen product adoption and carve out a larger position in India’s highly competitive digital payments market.
