For strengthen its foothold in the digital financial services sector, digital payments brand MobiKwik has acquired online wealth management platform Clearfunds.
This is MobiKwik’s first acquisition and will help the firm enter into a segment where rivals like Paytm have already made their presence felt.
MobiKwik didn’t disclose financial details of the deal. However, it said it has plans to invest $15 million (Rs 110 crore) by next year for expanding its wealth management business.
Last month, Paytm, the market leader in digital payments, launched its Paytm Money wealth management unit. It made its introductory capital infusion of Rs 9 crore, into the unit in April. Paytm had announced that it planned to invest $10 million in the new business.
“This acquisition will help us get a headstart in the wealth management domain,” said Upasana Taku, co-founder and director, MobiKwik.
“We will continue to look at strategic investments or acquisitions that can add value to our business,” he added.
Post the acquisition, Kunal Bajaj, founder and CEO of Clearfunds, will lead MobiKwik’s wealth management segment. Bajaj holds more than 18 years of experience in the financial services industry. He was associated with financial institutions such as Goldman Sachs, Credit Suisse and JP Morgan.Prior to launching Clearfunds, he was managing director and head of equity sales at Jefferies India.
Clearfunds, backed by Harvest Fintech Pvt. Ltd, was established in 2016. It is a direct mutual fund investment platform that makes use of data analytics and automated processes to enable users investments.