Kunal Shah:
Kunal Shah’s ₹5,215 Crore Losses Spark Debate: Why Is He Still Celebrated?
Kunal Shah’s Startups Face Scrutiny Amid Mounting Losses
A LinkedIn post by Deloitte Senior Consultant Adarsh Samalopanan has triggered widespread debate in India’s startup ecosystem. The post, which questions the celebration of Kunal Shah despite his companies incurring ₹5,215 crore in cumulative losses and not recording a single profitable year, has sparked mixed reactions from professionals, entrepreneurs, and industry analysts.
Samalopanan’s central argument revolves around a fundamental question: “Why do we celebrate entrepreneurs like Kunal Shah who have not shown profitability in over 15 years?” This remark comes amid increasing public scrutiny of startup valuations, venture capital-fueled growth, and the absence of sustainable revenue models.
Kunal Shah’s Entrepreneurial Journey: From Freecharge to CRED
Kunal Shah, one of India’s most recognized startup founders, began his entrepreneurial journey with Freecharge in 2010. The platform gained immense traction by offering cashback incentives on mobile recharges, becoming a favorite among millennials. By 2015, Freecharge had reported ₹35 crore in revenue but suffered ₹269 crore in losses.
That same year, Snapdeal acquired Freecharge for ₹2,800 crore, making headlines as one of India’s largest startup acquisitions. However, the glory didn’t last long. In 2017, Axis Bank acquired Freecharge for just ₹370 crore, reflecting a significant drop in valuation — a mere 13% of its earlier value.
Undeterred, Kunal Shah launched CRED in 2018, a fintech platform aimed at rewarding users for paying credit card bills on time. CRED quickly became one of India’s most talked-about startups, boasting sleek marketing campaigns and a premium user experience. Yet, critics continue to question the financial viability of the business.
CRED’s Financials Under the Lens
According to Adarsh Samalopanan, CRED has posted cumulative revenue of ₹493 crore since its launch in 2018. However, the net losses have been staggering — a total of ₹5,215 crore over seven years. These figures raise questions about long-term sustainability, especially in an ecosystem that is gradually shifting its focus from growth at all costs to profitability.
Despite these numbers, Kunal Shah remains a celebrated figure in India’s tech and business circles. From speaking at top-tier events to featuring in prominent business media interviews, his influence shows no signs of waning. This paradox is precisely what Samalopanan sought to highlight.
Mixed Reactions to the Criticism of Kunal Shah
The post has divided public opinion. While many LinkedIn users echoed Samalopanan’s concerns, others came to Kunal Shah’s defense, highlighting his vision, market impact, and the innovation he brought to digital finance.
“He is celebrated because he doesn’t just build companies — he changes markets,” wrote one user. “Freecharge revolutionized digital payments before UPI existed. CRED made paying credit card bills aspirational. Profitability may be lacking, but redefining consumer behavior is a bigger win.”
Others were more critical. One user remarked, “We’re applauding losses and inflated valuations as if they’re medals. When will sustainable businesses get the spotlight?”
Some drew comparisons to global success stories that followed a similar trajectory. “By this logic, WhatsApp should never have been acquired. It was never profitable either,” a commenter noted.
Kunal Shah’s Response: A Call to Celebrate All Entrepreneurs
In response to the viral post, Kunal Shah addressed the criticism with remarkable humility. Acknowledging the concerns raised, he wrote,
“Absolutely correct. We should be celebrating thousands of entrepreneurs who have created profitable companies without external capital.”
He added that in the age of artificial intelligence, being an entrepreneur is more important than ever, as job security becomes increasingly uncertain.
“We should celebrate everyone who takes risks in life and becomes a job creator. In the post-AI world, being a job seeker may be more risky than being an entrepreneur,” Shah noted.
His reply emphasized the need to support risk-takers who, regardless of profitability, are attempting to solve complex problems and create jobs at scale.
Kunal Shah on Indian Consumer Mindset
In a separate interview with Forbes India, Kunal Shah shared his views on how Indian consumers approach money and time. He criticized the obsession with saving small amounts at the expense of time, pointing out that many Indians don’t value their time monetarily.
“Teenagers in the US know their hourly worth. Most Indians don’t. We waste hours just to save a few rupees. That’s not efficiency — that’s financial anxiety,” he explained.
This perspective offers a glimpse into his consumer-centric philosophy, one that guides his product design and long-term strategic thinking at CRED.
The Bigger Question: Is Profitability the Only Metric?
The Kunal Shah debate opens up a broader question that goes beyond any single entrepreneur — should startups be judged solely on profitability? In the tech-driven world of high-scale disruption, many startups spend years in the red while building infrastructure, acquiring users, and creating new markets.
However, critics argue that valuation without validation — i.e., profitability or at least a clear path to it — is a risky game that could mislead investors and destabilize markets.
Final Thoughts: Kunal Shah and the Startup Success Dilemma
Despite the losses, Kunal Shah remains a symbol of bold innovation in India’s startup landscape. Whether one agrees with Samalopanan’s critique or not, the discussion it has sparked is both timely and necessary.
In a country where unicorns are multiplying and capital is flowing freely, it’s important to question which metrics truly define success. Is it revenue, impact, valuation, or profitability? Or is it the ability to dare, disrupt, and define?
For now, Kunal Shah continues to walk that fine line between visionary leadership and fiscal scrutiny — and the world is watching closely.
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