Kunal Shah’s Business Empire Under Scrutiny Amid Mounting Losses and No Profits
Mumbai – Serial entrepreneur Kunal Shah, known for founding fintech startups FreeCharge and CRED, is facing growing criticism over the financial performance of his ventures, with neither company having posted a single profitable year since inception.
Shah, widely recognized for his marketing acumen and disruptive vision, has raised hundreds of millions in funding across his startups. However, a recent analysis reveals that his businesses have collectively racked up over ₹5,200 crore in net losses over the past 15 years.
📉 Losses Outweigh Revenue Growth
CRED, launched in 2018 to reward creditworthy customers for timely bill payments, posted a loss of ₹1,279 crore in FY22 against a revenue of ₹422 crore, effectively losing ₹3 for every ₹1 earned. In total, CRED has generated ₹4,493 crore in revenue since launch but incurred ₹5,215 crore in losses.
Before CRED, Shah co-founded FreeCharge, a mobile recharge platform that sold to Snapdeal in 2015 for ₹2,800 crore. Just two years later, Snapdeal offloaded it for only ₹370 crore, reflecting a massive drop in valuation and profitability concerns.
🗣 Backlash from Industry and Public
A viral LinkedIn post by a Deloitte consultant recently reignited debate around Shah’s business strategy. The consultant questioned why the startup ecosystem continues to celebrate Shah, given his ventures’ long-standing unprofitability.
Online forums have also been critical. One Reddit user wrote:
“None of his companies have made a single paisa of profit. Only gyaan, investor money burned.”
Another added:
“Cred will never be profitable. It’s just branding and burn.”
🛡️ Shah’s Response: “Growth First, Profits Later”
Despite criticism, Shah defends his approach. He argues that his businesses have prioritized ecosystem-building and scale over short-term profits. He recently stated that loss-making companies like CRED have played a key role in expanding India’s fintech adoption.
Shah also points to the early success of his NBFC arm, Newtap Finance, which reportedly made a modest profit of ₹5.6 crore in its first full year of operation.
Additionally, in a symbolic move, Shah capped his salary at just ₹15,000 per month, saying he would only increase it after achieving profitability.
⚖️ A Long-Term Bet?
While investors continue to support Shah’s ventures due to their innovation and user growth, questions persist about long-term viability and sustainable revenue models. With competition rising and investor focus shifting toward profit-generating businesses, the pressure is mounting.
For now, Kunal Shah remains one of India’s most visible and polarizing startup figures — admired by some for vision, challenged by others for performance.
