Mobile wallet firm MobiKwik has acquired Mumbai-based online mutual fund investment platform Clearfunds for an undisclosed amount to foray into wealth management. This is as per a report in the Economic Times.
While the terms of the acquisition were not disclosed. MobiKwik said it would invest $15 million (around Rs 112 crore) to scale up its wealth management business over the next year. Clearfunds founder and CEO Kunal Bajaj will lead MobiKwik’s wealth management business.
“MobiKwik users will now be able to start their investing journey with as little as Rs 100,” says Upasana Taku, Co-Founder and Director, MobiKwik.
MobiKwik said its 107 million plus customers will soon be able to start saving in mutual funds seamlessly from their MobiKwik app in just a few clicks. Started in 2016, Clearfunds claims to have $45 million worth of Assets Under Advisory and its platform allows clients to access over 3,000 direct mutual fund schemes across all 36 Mutual Fund Companies (AMCs) and 4 Registrar and Transfer Agents (RTAs).
“This is the first-ever acquisition by MobiKwik as we look to build out our full-stack fintech platform and deliver more financial products to our 107 million plus customer base. We will continue to look at strategic investments or acquisitions that can add value to our business,” says Taku.
“We are confident that with this acquisition, we will be able to take wealth management to millions of Indians located across the country, create awareness about the benefits of direct mutual funds and help them manage their investments better” said Bajaj.
Digital payments major Paytm also forayed into mutual fund investments with the launch of Paytm Money last month.