A LinkedIn post by Adarsh Samalopanan, a Senior Consultant at Deloitte, has reignited controversy around Kunal Shah, co-founder of Freecharge and CRED. Samalopanan sharply criticized Shah’s track record of cumulative losses and zero profitable years, questioning the entrepreneurial accolades he continues to receive.
🧠 The Numbers Behind the Critique
- Freecharge (2010–2015): Earned ₹35 Cr in revenue by 2015, but accumulated ₹269 Cr in losses due to aggressive cashback offers. After Snapdeal acquired the business for ₹2,800 Cr, it was later sold to Axis Bank for only ₹370 Cr—a steep devaluation of 85%.
- CRED (2018–2025): Reported a total revenue of ₹4,493 Cr but incurred net losses totaling ₹5,215 Cr across seven years.
- Samalopanan bluntly asked: “Fifteen years into entrepreneurship, he has yet to record a single profitable financial year—so remind me again why we celebrate him?”.
🧩 Expert Perspective vs. Public Reaction
The post triggered diverse reactions online:
- One LinkedIn user defended Shah, saying, “He is celebrated because he doesn’t just build companies—he changes markets… Profitability? Not yet.”
- Others criticized the narrative of venerating loss-making founders.
- On Reddit, the sentiment was more visceral, with comments like: “He behaves more like a motivational coach rather than a businessman”.
🏆 Shah’s Response
In a measured reply, Kunal Shah agreed with the need to recognize profitability:
“Absolutely correct. We should be celebrating thousands of entrepreneurs who have created very profitable companies without external capital… We need more job creators.”
📊 Why This Debate Matters
| Theme | Insight |
|---|---|
| Profitability vs. Vision | Shah’s ventures haven’t delivered consistent profit—but they’ve reshaped Indian fintech and consumer credit. |
| Valuation vs. Sustainability | While CRED rebounded from a down-round valuation (~$3.5B), questions linger on capital efficiency and long-term viability. |
| Cultural Commentary | Shah himself has critiqued India’s “founder-worship” culture, urging a shift toward accountability and excellence . |
🧭 Final Insight
Kunal Shah’s story captures the central tension of India’s startup ecosystem—and global innovation: audacious vision vs. hard financial discipline.
- Defenders argue that his ventures have disrupted entire industries and unlocked new markets.
- Critics insist that long-term success must translate into sustainable profitability.
This is not just Shah’s story—it’s a broader narrative about how India defines entrepreneurial success in an age where external capital and market influence can mask underlying financial weakness.
✅ Takeaway for Founders & Investors
- Founders: Build for scale, but not at the cost of operational sanity. Balance bold ambition with a clear path to profitability.
- Investors: Demand stronger unit economics and deeper discipline—especially in capital-intensive models.
- Changemakers: Redefining success means acknowledging both market impact and financial health.
