Investment of ₹8,500 crore in CRED:Meta wants to become a ‘habit’ in Indians’ transactions

Meta has failed to understand the mood of Indians when it comes to payments. WhatsApp Pay’s share in India is less than 0.4%. On the other hand, PhonePe and Google Pay together handle more than 80% of UPI transactions. Having lost the payments race, Meta has placed a new bet. Meta is going to invest $900 million, approximately ₹8,500 crore, in CRED. CRED’s current valuation is estimated at around ₹37,000 crore. This is about 50% less than its record valuation of ₹56,000 crore, but it is still a high position among India’s top fintech startups. CRED is currently in losses, yet Meta is investing big capital in it. The market is viewing this as a strategy to reach India’s ‘well-financed’ consumers. This deal will give Meta access to merchant networks, fintech ecosystem, and premium user base. CRED’s strength – Premium, high-spending, creditworthy customers with credit scores above 750 CRED is a fintech platform. It has over 1 crore users with a credit score of 750+. This means its user base is premium, high-spending and creditworthy. These are the customers that banks, insurance companies and luxury brands acquire through years of effort. CRED started with credit card bill payments. Now it has expanded to UPI, loans, rent payments, wealth products. Meta’s Need – Accurate Data Meta earns from advertising. In 2025, approximately 98% of its revenue of ₹18.5 lakh crore came from advertising. But advertising requires accurate data and deep connection with consumers. Payment platforms provide exactly this. The company that becomes a habit for your money transactions can also become the next destination for loans, insurance and shopping. Meta is moving towards this ’embedded finance’. WhatsApp Pay – Only 0.4% Market Share in 8 Years Journey WhatsApp Pay was launched in 2018. It was among the first to enter the UPI revolution. But it did not achieve success. NPCI initially set a limit of only 10 lakh users. Later it was increased to 2 crore, then to 10 crore. In 2024, the limits were removed, but WhatsApp Pay could only reach 0.4% market share. PhonePe and Google Pay captured more than 80% of UPI payments. Challenge – Loss Equal to Half the Revenue Total Users – Out of 1.7 crore users, about 1 crore have a credit score above 750 Total Payment Volume from Platform – Reached 8.5 lakh crore rupees in the last financial year Revenue from Operations – ₹2,735 crore Net Loss – ₹1,457 crore Usage – 50% active users are currently using three or more products