By Samannay Biswas
Kunal Shah, the founder of fintech unicorn CRED and co-founder of FreeCharge, finds himself at the centre of a social media storm after a Deloitte consultant publicly questioned the justification for his widespread praise—despite having never posted a profit in 15 years of building startups. In a LinkedIn post that went viral, Adarsh Samalopanan, a Senior Consultant at Deloitte, highlighted the financial track record of Shah’s ventures, writing: “Fifteen years into entrepreneurship, he has yet to record a single profitable financial year—so remind me again why we celebrate him?” FreeCharge to CRED: Losses & Valuations Samalopanan recounted how FreeCharge, founded in 2010, posted Rs 35 crore in revenue by FY15, but suffered Rs 269 crore in losses due to aggressive cashback incentives. The company was acquired by Snapdeal for Rs 2,800 crore in 2015, only to be sold off to Axis Bank for Rs 370 crore in 2017—a steep 86 per cent fall in valuation. Turning to CRED, launched in 2018, the consultant noted the company has clocked a cumulative revenue of Rs 4,493 crore but racked up Rs 5,215 crore in net losses in just seven years. The Celebration Paradox Samalopanan’s post struck a chord with many, garnering mixed reactions across LinkedIn. While some agreed that unprofitable startups are over-glorified, others defended Shah’s legacy of market disruption and consumer innovation. One user wrote: “Absolute truth. Still wondering how valuations were calculated back in 2015… Something hidden which we may not know.” Another, in defence of Shah, argued: “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 on Mindset and Money Interestingly, the post comes shortly after Shah commented on Indians’ tendency to waste time to save money, contrasting it with how American teens understand their hourly worth. “In India, people stand in line for hours to save Rs 50. In the US, teenagers know their time is worth more,” Shah had said in a Forbes India interview. This broader value-of-time narrative is something Shah frequently touches upon in his public talks, aiming to shift India’s consumer and entrepreneurial mindset toward value creation over penny-pinching. What This Signals About the Startup Landscape The debate reflects an ongoing tension in India’s startup ecosystem, where valuation, scale, and impact often take precedence over bottom-line results. With venture capital backing and user acquisition seen as early-stage success metrics, profitability remains a distant goal for many. Yet, Samalopanan’s post underscores a growing call for financial sustainability and transparency, especially as investors become more cautious and public scrutiny increases. Kunal Shah’s journey remains a study in contrast—immense influence without immediate profitability. Whether that qualifies as failure or foresight depends on whom you ask. What’s undeniable, however, is that his startups have played a pivotal role in shaping India’s fintech narrative, and the debate around him mirrors larger questions about how India measures startup success. Get Latest News Live on Times Now along with Breaking News and Top Headlines from Companies, Business Economy and around the world.