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The post triggered a debate among users on the definition of success in the startup ecosystem.
Kunal Shah is the founder of CRED and Freecharge.
CRED founder Kunal Shah has responded to a widely circulated LinkedIn post that questioned the celebration of his entrepreneurial journey despite over a decade of financial losses. The post, authored by Adarsh Samalopanan, a senior consultant at Deloitte, pointed out that Shah’s ventures—Freecharge and CRED—have cumulatively posted losses exceeding Rs 5,200 crore, without recording a single profitable year.
In response, Shah acknowledged the criticism and offered a broader perspective on entrepreneurship. “Absolutely correct. We should be celebrating thousands of entrepreneurs who have created very profitable companies without external capital,” he wrote in a comment under the post. He further added, “We should celebrate everyone who is taking risk in life and being an entrepreneur, because in a post-AI world, being a job seeker is going to be more risky. We need more job creators.”
The LinkedIn post noted that Freecharge, founded by Shah in 2010, had earned Rs 35 crore in revenue by 2015 but posted losses of Rs 269 crore, mainly due to cashback offers. The company was acquired by Snapdeal for Rs 2,800 crore, but later sold to Axis Bank for just Rs 370 crore—a mere 14% of its earlier valuation.
Shah’s second venture, CRED, launched in 2018, has generated Rs 4,493 crore in revenue over seven years but reported net losses of Rs 5,215 crore during the same period.
The post triggered a debate among users on the definition of success in the startup ecosystem. While some questioned the focus on funding and valuations without profitability, others defended the risk-taking spirit of entrepreneurs who create jobs and disrupt industries.
Many users echoed Adarsh Samalopanan’s concern about how entrepreneurs with prolonged losses, like Kunal Shah, are still celebrated. They questioned whether startups should continue to enjoy investor confidence without showing sustainable profits.
Several users jumped in to defend Kunal Shah, saying many globally successful startups like Facebook and WhatsApp took years to become profitable. They argued that innovation and long-term impact matter just as much as profits.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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