Cred Acquires Kuvera, Forays Into Wealth Management
After the acquisition, Kuvera founders, the team and product will continue to operate independently.
Credit card bill payment app Cred has agreed on terms for the acquisition of online wealth management platform Kuvera for an undisclosed sum.
The transaction is a mix of cash and stock, according to a joint statement on Tuesday.
Kuvera is one of India's top five direct mutual fund platforms, with a user base of over 3 lakh and more than Rs 50,000 crore in assets.
"Kuvera has a loyal and active base of affluent users who invest significantly more than the average Indian retail investor," it said.
The Kuvera investor's average systematic investment plan size is over Rs 5,000, two times more than the industry average and the total mutual fund investment of over Rs 12 lakh is five times higher than the industry average, according to the statement.
After the acquisition, Kuvera founders Gaurav Rastogi and Neelabh Sanyal, the team and the product will continue to operate independently while working closely with Cred operator Dreamplug Technologies Pvt. "Kuvera customers' accounts, portfolio and all ongoing investments will continue seamlessly even as they stand to benefit from the combined expertise, synergies, and resources of Kuvera and Cred," it said.
"Kuvera is extremely popular among financially savvy Indians. Their products and vision are aligned with Cred's principle of investing for long-term value creation rather than short-term entertainment," Cred founder Kunal Shah said.
"Together with Cred, we see an exciting opportunity to fast-track building new products and features for our community while also bringing a trusted wealth management solution to millions more," Rastogi said.
This is Cred's fifth acquisition since it launched in 2018. It has acquired CreditVidya, liquor purchase and delivery startup HipBar and expense management startup Happay, apart from a stake in LiquiLoans.
