How one conversation led Kunal Shah to become WhatsApp's head
What's the story
Meta Platforms Inc. has appointed Kunal Shah, the founder of fintech start-up CRED and one of India's most prominent angel investors, as the new global head of WhatsApp. The decision was made after Chris Cox, Meta's Chief Product Officer, reached out to Shah for advice on selecting a leader for the messaging service. Cox had been consulting entrepreneurs and investors in countries where WhatsApp is widely used and accepted.
Impressive response
Shah's insights on WhatsApp impressed Cox
Shah's insights on the future of WhatsApp left a lasting impression on Cox. "He had an incredible set of answers," Cox told Bloomberg. At the end of their conversation, he suggested they discuss the possibility of Shah taking up the role himself. Soon, a three-month-long hiring process started, involving multiple trips for Shah to Meta's headquarters in California, including dinner at Meta CEO Mark Zuckerberg's house.
Business growth
Shah to focus on expanding WhatsApp's business
Despite having over three billion monthly users, WhatsApp's business remains relatively underdeveloped given its userbase. The app generates billions annually from paid messaging and ads that direct users to chats with businesses. However, it is yet to fully capitalize on other revenue-generating products like subscriptions and AI agents and payments. "While it's come very far," Shah said on X (formerly Twitter), "the delta between WhatsApp today and its full potential is massive."
Entrepreneurial success
Shah has invested in over 250 start-ups
Shah, a former Sequoia Capital India advisor, has invested in over 250 start-ups including Indonesian super-app Gojek and Indian payments company Razorpay. He also founded several companies, the latest being CRED which rewards its 17 million monthly users for timely credit card bill payments. As part of his recruitment to run WhatsApp, Meta invested $900 million into CRED for a nearly 20% stake.
Educational journey
Early entrepreneurial journey
Born in Ahmedabad and raised in Mumbai, Shah studied philosophy at Wilson College before pursuing a management course. However, he left after a few months to become an entrepreneur. In 2010, he launched FreeCharge, a start-up that rewarded users recharging prepaid phones with discount coupons before expanding into digital payments. Five years later, Snapdeal acquired FreeCharge for about $400 million.
Business philosophy
Practical understanding of India's financial system
Shah believes financial products are essentially psychology products and consumer behavior is more important than engineering. He knows why Indians don't use certain financial products or what inspires confidence in payments. His years of working with banks, shadow lenders, regulators, and payment companies have given him a practical understanding of India's financial system, critical knowledge for developing a messaging service focused on expanding its role in payments.