Overview
India’s startup ecosystem is buzzing after a recent LinkedIn post by Deloitte Senior Consultant Adarsh Samalopanan, who questioned the celebration of Kunal Shah, founder of CRED, despite ₹5,215 crore in business losses and zero profitability over 15 years. The post has ignited a fierce debate among entrepreneurs, investors, and the public.
Kunal Shah’s Entrepreneurial Journey
Freecharge: The Early Spark
Kunal Shah’s startup story began in 2010 with the launch of Freecharge, an innovative platform for online mobile recharges with cashback offers. In just five years, the company saw revenues of ₹35 crore but racked up ₹269 crore in losses. Despite these losses, Snapdeal acquired Freecharge in 2015 for ₹2,800 crore — a headline-making deal.
However, in 2017, Axis Bank purchased Freecharge for just ₹370 crore, a massive drop in valuation that raised eyebrows across the ecosystem.
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CRED: Style Over Sustainability?
In 2018, Shah launched CRED, a credit card bill payment app with premium design and reward points. Despite creating a strong brand identity and user experience, financial reports indicate that CRED has generated ₹493 crore in cumulative revenue while incurring ₹5,215 crore in net losses over seven years.
This staggering figure calls into question the app’s monetization model and investor enthusiasm. Still, Kunal Shah’s business losses haven’t dampened his influence.
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The LinkedIn Post That Sparked It All
Adarsh Samalopanan’s post read:
“Fifteen years into entrepreneurship, and not a single profitable year. Why do we celebrate him?”
The statement sparked strong reactions — some criticized Shah for failing to generate profits despite heavy funding, while others defended his long-term vision and disruptive impact.
Many argued that startups like CRED are about changing user behavior first, and profitability comes later. Others believe ₹5,215 crore in loss with no clear path to profit reflects poor business fundamentals.
Kunal Shah Responds to the Criticism
Kunal Shah didn’t shy away. He responded with a balanced tone, saying:
“Absolutely correct. We should be celebrating thousands of entrepreneurs who have created profitable companies without external capital.”
He further emphasized the importance of encouraging risk-takers:
“In a post-AI world, being a job seeker is going to be more risky. We need more job creators.”
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Profitability vs. Vision: The Core of the Debate
This debate around CRED startup profitability mirrors broader questions in the Indian startup world. Is profitability a mandatory success marker? Or should we celebrate founders who disrupt the market, change consumer behavior, and redefine norms — even without profits?
Kunal Shah’s Freecharge made digital payments mainstream before UPI, while CRED gamified credit bill payments — influencing an entire generation of users. But does vision justify massive losses?
Some LinkedIn users compared Shah to Amazon’s Jeff Bezos or WhatsApp’s Jan Koum — both founders who focused on user base first, profits later.
Others worry about inflated valuations and a lack of accountability.
Frequently Asked Questions
Q1. What is the ₹5,215 crore loss referring to?
It refers to the total net loss incurred by CRED over the past seven years (2018–2025), according to available financial reports.
Q2. Has Kunal Shah ever led a profitable company?
Neither Freecharge nor CRED has reported a profitable year since their inception. Despite significant funding, both ventures have operated at a loss.
Q3. Is this kind of business loss common in startups?
While early-stage losses are common in startups, ₹5,215 crore in business losses over seven years with limited revenue is unusually high and concerning for many investors.
Q4. Why is Kunal Shah still celebrated?
Supporters argue that Shah built platforms that redefined how Indians interact with digital finance — and that such market disruption should be celebrated.
Q5. What are the risks of continuing unprofitable operations?
Startups that don’t show a clear path to profitability may struggle with future funding, valuations, and regulatory scrutiny — especially in a maturing ecosystem like India’s.
Conclusion
The case of Kunal Shah’s business losses is not just about numbers — it’s about what we value in founders. Should we reward only those who show profits? Or also those who dare to build and change the game?
While ₹5,215 crore in loss and zero profit raise valid concerns, there’s no denying Shah’s impact on fintech and digital behavior in India.
This debate is far from over, but it challenges us to rethink what success really looks like in the startup world.