Transition in Leadership at CRED
Kunal Kashyap, who served as the Head of Risk Management at CRED for nearly four years, has recently tendered his resignation, marking a significant transition in leadership within the fintech unicorn. Following his departure from CRED, Kashyap is set to join slice, a fintech startup, according to reports. This decision comes amidst the ongoing merger between slice and North East Small Finance Bank, with regulatory approvals pending.
Role at slice
At slice, Kashyap will assume a pivotal role in leading a segment of the credit business within the newly-formed bank, subject to regulatory clearance of the merger. His expertise in risk management and financial services is expected to contribute to slice’s strategic objectives in the credit domain.
Professional Background of Kunal Kashyap
Prior to his tenure at CRED, Kashyap amassed extensive experience in the financial sector, having worked with renowned organizations such as Capital One for a duration of eight years. Additionally, he co-founded two startups, namely Stepchange Technologies and TwoDotSeven, focusing on recurring payments solutions and credit analytics, respectively.
Merger Progress between slice and North East Small Finance Bank
The impending merger between slice and North East Small Finance Bank has gained momentum, with the Competition Commission of India (CCI) recently granting approval. This strategic alignment is poised to enhance slice’s market presence and expand its service offerings.
Regulatory Approvals Awaited
While the merger has received the green light from the CCI, regulatory approvals from other authorities are pending, including clearance from the National Company Law Tribunal (NCLT). Once finalized, the merger is expected to pave the way for synergistic collaborations and operational integration.
Financial Performance of slice’s Parent Entity
Garagepreneurs Internet Private Limited (GIPL), the parent company of slice, reported a significant year-on-year increase in consolidated net loss during the fiscal year 2023. Despite this, the operating revenue witnessed a substantial surge, underscoring the growth trajectory and potential of slice in the fintech landscape.
Amidst Kashyap’s departure, CRED continues its upward trajectory and strategic expansion initiatives, particularly in the lending segment. With a focus on diversifying its product portfolio, CRED aims to bolster its revenue streams and capitalize on emerging opportunities in the fintech ecosystem.
Strategic Acquisitions by CRED
In line with its growth strategy, CRED made strategic acquisitions, including CreditVidya, operator of Prefr, a digital lending platform specializing in underwriting and risk assessment models. These acquisitions signify CRED’s commitment to innovation and market leadership in the fintech domain.
Regulatory Landscape and UPI Adoption
The regulatory landscape in the fintech sector continues to evolve, with a focus on promoting digital payments and enhancing financial inclusion. Initiatives such as UPI Lite and credit lines on UPI underscore the efforts of regulatory bodies and industry stakeholders to drive UPI adoption and innovation.
As slice prepares for its merger with North East Small Finance Bank and CRED strengthens its position in the lending segment, the fintech industry anticipates further growth and innovation. With regulatory approvals imminent, both entities are poised to embark on a new chapter of expansion and value creation.
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