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Meta is in talks to invest in fintech startup Cred in a deal that could value the company at approximately $4 billion. According to people familiar with the matter, the discussions have been taking place for the past few weeks and involve a potential primary capital infusion worth tens of millions of dollars. However, no final agreement has been reached yet.
If the deal goes through at the proposed valuation, it would mark a recovery from Cred's reported $3.5 billion valuation in 2025. The figure, however, remains well below the $6.4 billion valuation the company secured during its last major funding round in 2022.
Some sources noted that Meta has evaluated multiple options while exploring a relationship with Cred. Besides a direct investment, the social media giant weighed the possibility of acquiring the company at a lower valuation. Another option discussed internally involved bringing Cred founder Kunal Shah into Meta in an operating role.
“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,” a person aware of the discussions said.
The investment talks surface as Cred looks to raise new funds after a prolonged slowdown in startup financing.
The company, founded by Kunal Shah in 2018, started out as a business that rewarded customers for timely credit card bill payments. However, the firm has recently diversified into areas such as loans, payments, shopping, and other financial services.
Cred has established a great reputation among the wealthy urban individuals and is known as one of the prominent companies in India's fintech space.
However, like other late-stage startups, the company is under pressure from its investors to increase profitability following the capital decline in 2021 and 2022.
Also Read: Cred Executives Jailed for $150M Crypto Fraud Scheme That Misled Investors
The discussions reflect Meta’s continued interest in India's digital economy, one of the company's largest markets globally. The technology giant has been looking beyond social media and advertising, with increasing focus on commerce, payments, and business services across platforms such as Facebook, Instagram, and WhatsApp.
A partnership with Cred could give Meta deeper exposure to India's fast-growing fintech ecosystem and consumer payments market. Cred and Meta have not responded to Moneycontrol's queries. Sources have also cautioned that discussions are ongoing and the final structure of the transaction could change.
