Welcoming the budget announcement related to tax exemption for people earning income up to Rs 12 lakh, CRED CEO Kunal Shah highlighted the potential impact of the move on consumer spending, particularly among Gen Z.
Reacting to Union Finance Minister Nirmala Sitharaman’s Budget 2025 announcement, Shah took to X (formerly Twitter) and wrote, "New income tax limits could cause big jump in Gen Z consumption spends."
Shah’s post suggests that with more disposable income in hand, younger generations are likely to boost their spending on various sectors, including technology, travel, dining, and lifestyle products.
Netizens reaction
His post quickly gained traction, garnering over 380K views and sparking discussions among netizens.
Several users resonated with Shah’s viewpoint, emphasizing the positive impact on the economy and startups.
"Good for D2C startups," a user wrote.
"Good for the economy," another wrote.
"New tax policies can significantly influence consumer behavior, particularly among younger generations who prioritize spending on experiences and technology," a third expressed.
"This also made annuity and hence NPS more attractive. With consumptions going up, I hope some money is invested towards building retirement corpus," a fourth noted.
Who is Kunal Shah?
Kunal Shah is an Indian entrepreneur best known for founding FreeCharge and CRED. Born on May 20, 1983, in Mumbai, he earned a Bachelor of Arts in Philosophy from Wilson College. He briefly pursued an MBA at Narsee Monjee Institute of Management Studies (NMIMS) but left to focus on his ventures.
In 2010, Shah co-founded FreeCharge, a digital platform that allowed users to pay bills and recharge services online. The company was acquired by Snapdeal in 2015.
In 2018, he launched CRED, a fintech app that rewards users for timely credit card bill payments. Beyond his startups, Shah is an active angel investor, supporting over 200 startups, including notable names like Razorpay and Unacademy.