‘Rs 5,215 Cr Losses in 15 Years Why Celebrate Kunal Shah?’ Deloitte Consultant Sparks Debate Over CRED Founder’s Track Record

By Admin

07 Jul, 2025

Deloitte Consultant Sparks Heated Debate Over CRED Founder’s Track Record

A LinkedIn post by Adarsh Samalopanan, a Senior Consultant at Deloitte, has reignited a long-simmering debate in India’s startup ecosystem. At the heart of the controversy lies Kunal Shah, the highly celebrated founder of FreeCharge and CRED two marquee fintech ventures that, despite their innovations, have never posted a single profitable year under his leadership.

The post, now viral, has stirred a storm of reactions, highlighting a paradox in the Indian entrepreneurial scene: massive valuations and widespread applause despite staggering financial losses.

The Provocative Post That Sparked It All

In his now widely discussed LinkedIn post, Samalopanan asked pointedly:

“Fifteen years into entrepreneurship, he has yet to record a single profitable financial year so remind me again why we celebrate him?”

He laid out the financial history of Shah’s ventures, noting a cumulative net loss of ₹5,215 crore under Shah’s startups over 15 years. His argument: entrepreneurial accolades should come with accountability, especially when public narratives around founders shape future investments, careers, and public trust.

From FreeCharge to CRED: A Timeline of Losses

FreeCharge: A Rocky Exit

Founded in 2010, FreeCharge once appeared poised to lead India’s digital payment revolution. It clocked ₹35 crore in revenue by FY2015 but also posted ₹269 crore in losses, primarily due to its aggressive cashback strategy. In 2015, it was sold to Snapdeal for ₹2,800 crore, in what was hailed as a landmark exit. However, the celebration was short-lived. By 2017, FreeCharge was sold to Axis Bank for a mere ₹370 crore an 86% collapse in valuation.

CRED: Heavy Investment, Heavier Losses

In 2018, Shah launched CRED, positioned as a premium credit card payment platform. While it brought an elite UX-driven approach to fintech, its bottom line hasn’t improved. Despite generating ₹4,493 crore in revenue since inception, CRED has posted a cumulative net loss of ₹5,215 crore in just seven years.

The Celebration Paradox: Why Praise an Unprofitable Legacy?

Samalopanan’s critique triggered divided opinions across social media.

Many resonated with his argument. One user wrote:

“Absolute truth. Still wondering how valuations were calculated back in 2015… Something hidden which we may not know.”

On the flip side, others defended Shah’s role in shaping modern Indian fintech. A popular comment stated:

“He doesn’t just build companies he changes markets. FreeCharge revolutionised digital payments before UPI. CRED turned credit card payments into a premium consumer experience.”

Shah’s Views: Time, Money & Mindset

Interestingly, this backlash comes shortly after Shah’s own statements about mindset and value perception in India, contrasting it with the West.

In a Forbes India interview, Shah remarked:

“In India, people stand in line for hours to save Rs 50. In the US, teenagers know their time is worth more.”

This view one that Shah has reiterated in his speeches reveals a deeper ambition: to transform consumer and entrepreneurial behavior, steering it toward value creation, not just value capture.

Startups in India: Valuation Over Viability?

This episode underscores a larger issue within India’s startup landscape: an environment where valuation, growth, and visibility often outshine profitability and long-term sustainability.

While venture capital continues to pour into early-stage businesses, there’s an emerging shift investors and the public are increasingly demanding clarity, efficiency, and financial responsibility.

Adarsh Samalopanan’s post might be one of many, but it signals a changing tide. The blind celebration of founders with unprofitable track records is being questioned, and transparency is becoming the new benchmark of trust.

Final Thoughts: Failure or Foresight?

Kunal Shah's journey, for all its financial shortcomings, is undeniably impactful. His ventures have played a crucial role in how Indians pay, spend, and engage with financial services. Whether that makes him a visionary ahead of his time or a founder in need of fiscal reality checks, depends on which side of the debate you're on.

But one thing is clear: his story mirrors the larger, more complex narrative of India's startup scene where innovation and disruption walk a tightrope with sustainability and accountability.