Kunal Shah: Rs 5,215 crore in losses

🚨 “Rs 5,215 crore in losses, no profitable year—so why do we celebrate Kunal Shah Rs 5,215 crore in losses?”: Deloitte Consultant Sparks Debate

📌 Post Overview

Deloitte Senior Consultant Adarsh Samalopanan ignited a fiery debate by questioning the celebration of Kunal Shah, founder of FreeCharge and CRED. Despite accumulating whopping Rs 5,215 crore in net losses and never posting a profitable year in 15, Samalopanan’s post asks: “so remind me again why we celebrate him?”

🧾 Key Highlights

• FreeCharge Era: Launched in 2010, FreeCharge generated Rs 35 crore in revenue by 2015—but burned through Rs 269 crore in losses. It sold to Snapdeal for Rs 2,800 crore, only to be acquired later by Axis Bank for Rs 370 crore—just ~14% of its peak valuation.
• CRED’s Financials: Since 2018, CRED has posted cumulative revenues of Rs 493 crore but racked up net losses of Rs 5,215 crore over seven years.
• Public Outcry: Samalopanan’s LinkedIn post triggered a wave of views. Critics demanded clarity on inflated valuations, while supporters defended Shah’s long-term vision and digital transformation achievements.

🔍 Shah’s Response & Broader Context

• Kunal Shah’s Reply: Shah acknowledged the praise for profitable entrepreneurs but emphasized that successful entrepreneurship also involves risk and market transformation. He highlighted the value of job creators in an AI-driven future.
• Industry Defense: Shah explained that loss-making startups like CRED played a vital role in expanding fintech and UPI adoption in India—a sentiment echoed at the 2023 Global Fintech Fest.
• Investor Perspective: While CRED’s valuation dropped from $6.4 billion in 2022 to $3.5 billion in mid‑2025, Shah insisted that real focus should be on revenue, product‑market fit, and sustainable growth—not short‑term valuations.

🧠 Why This Matters

1. Profit vs. Disruption: This debate touches a key question in startup culture—should funding extravagance trump profitability?
2. Valuation Critique: With CRED’s significant valuation cuts (~45%), Shah’s counternarrative urges a shift from short-term hype to enduring value creation.
3. Growth Philosophy: Shah’s stance highlights the role of high-burn, early-stage fintech in enabling wider financial inclusion and system-wide innovation.

🎯 Final Take

Adarsh Samalopanan’s point is blunt—but impactful: after 15 years of no profit and Kunal Shah Rs 5,215 crore in losses, does Shah deserve the admiration he receives? On the flip side, Shah’s defenders argue that reshaping sectors and fostering innovation can justify the costs.

As CRED marches on and its losses taper, the question remains: will Shah’s portfolio turn positive—and will history vindicate this brand of bold, visionary entrepreneurship?

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