WhatsApp had half a billion active users before Facebook. They were doing just fine. That’s why Facebook paid over $20 billion for it.
After WA added e2e it became politically possible within FB to add the same to Messenger (as long as it behind a few conversation gateways that made it hidden for most users) but FB leadership did _not_ support adding e2e to WA and certain groups continued to fight against adding it to Messenger because it was going to close off a channel for the ads team to pick up signal by spying on user conversations.
The YouTube video I linked to is Neeraj Arora, early WhatsApp employee, on what Facebook's acquisition meant for WhatsApp.