The talks may have stalled for now, but a merger would not be a bad idea. The two giants could draw on their core competencies to benefit one another.
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The Kunal Shah-helmed fintech needs both growth and profitability to raise capital. But the two goals are contradictory and CRED will soon have to decide between raising at a reduced valuation or delaying the fundraise.
Vijay Shekhar Sharma has focused on improving compliance, cutting costs and recovering market share after the RBI shut down his payments bank last year. The fintech major is yet to recover to its earlier highs, but its turnaround is gathering momentum.
It reported losses in Q2 and Q3, its financial services business is reeling and its payments business is growing but earning less. The Gurugram-based fintech needs a turnaround.