Meta names Kunal Shah to lead WhatsApp as it backs CRED funding round

SILICON VALLEY: Meta has appointed Indian fintech entrepreneur Kunal Shah as the new head of WhatsApp, as the company looks for ways to generate more revenue from the messaging platform’s vast global user base.

The announcement was made on Monday night and came alongside news that Meta will lead a $900 million funding round in Shah’s consumer finance company, CRED. Meta chief Mark Zuckerberg praised Shah in a statement and said his track record in building businesses would be valuable in the new role.

"Kunal built CRED into one of India's most important technology companies," Meta chief Mark Zuckerberg said in a statement. "He brings the kind of builder mentality and global perspective that will serve him well in running the world's biggest messaging app."

Shah is a prominent figure in India’s financial technology sector and launched CRED in 2018 after selling an earlier payments startup to Indian e-commerce company Snapdeal for about $400 million. He is also among the country’s most active angel investors, according to data tracker Tracxn, while Indian financial media has often reported that he agrees to seed funding proposals within minutes of hearing them.

In recent years, however, Shah has concentrated on expanding CRED. The company began by rewarding users for paying credit card bills on time and has since moved into wealth management, insurance and lending. CRED now serves 17 million users.

That background could be significant for WhatsApp as Meta seeks to build income streams beyond its core advertising business, which is anchored by Facebook and Instagram. Although India is WhatsApp’s biggest market, with more than half a billion users according to 2021 government figures, analysts say the platform has not yet managed to establish a payments service with comparable reach.

In May, WhatsApp introduced artificial intelligence tools for businesses in India, including features to answer customers around the clock and help schedule appointments. Shah, in a statement, said there remained substantial room for expansion in the platform’s future development.

Shah’s appointment was also welcomed across India’s startup community, where it was viewed as another example of an Indian-born executive rising to lead a major Silicon Valley company. Sajith Pai of Blume Ventures, an early-stage startup investor, said Shah was getting an even bigger platform for his ideas.