Fintech unicorn CRED has made an entry into the wealth management space with the acquisition of mutual fund investing platform Kuvera. This is the fifth acquisition for the Kunal Shah-led firm since its inception and second in the past year.
CRED has confirmed the acquisition through a press statement but the company did not reveal the size of the deal. The transaction is a mix of equity and cash components.
Founded in 2016, Kuvera is an online wealth management platform for mutual funds, stocks, fixed deposits, and US stocks. The Kuvera investor’s average SIP size is over Rs 5,000, 2x more than industry average, and total mutual fund investment of over Rs 12 lakh is 5x higher than the industry average, claimed Kuvera and Cred in a joint statement.
Following the acquisition, Kuvera founders, team, and product will continue to operate independently. They will also work closely with Cred leadership to scale its network, ecosystem, brand, and distribution. Moreover, Kuvera customers’ account, portfolio, and all ongoing investments will remain unchanged.
As of now, Kuvera has raised $10 million from Fidelity, EightRoad Ventures and several angels. In FY23, Kuvera’s revenue from operations decreased by 70% to Rs 89 lakhs while its losses increased by 10% to Rs 38.1 crore.
Previously, CRED acquired CreditVidya in November 2022 and took over liquor purchase and delivery startup HipBar and expense management startup Happay in October and November 2021 respectively. It also acquired a minority stake in LiquiLoans in September 2022.
With this acquisition, CRED’s competition horizon has widened and it will now count Zerodha, Groww, AngelOne, Upstox, Paytm Money and several others.