Indian digital payments company MobiKwik has acquired Mumbai-based online wealth management startup Clearfunds for an undisclosed amount. This is MobiKwik’s first ever acquisition, as it looks to build a full stack fintech platform.
MobiKwik will be investing around ₹110 crores ($15 million) over the next year, in order to scale its wealth management business.
Post acquisition, Kunal Bajaj, Founder and CEO of Clearfunds, will head MobiKwik’s new wealth management business.
The news comes nearly a month after India’s leading digital payments company Paytm announced the launch of its wealth management platform Paytm Money. One97 Communications, Paytm’s parent company, has further committed to invest $10 million in Paytm Money, to help set up operations.
MobiKwik will be looking to leverage Clearfunds technology platform to achieve its goal of providing a comprehensive platform for fintech services to its users.
Speaking on the acquisition, Upasana Taku, Co-Founder and Director, MobiKwik, said, “This acquisition will help us get a head start in the wealth management domain. Clearfunds has done exceptionally well in a short span of time and has an edge over its competitors, owing to its superior technology know-how and advanced data analytics. MobiKwik users will now be able to start their investing journey with as little as Rs. 100.”
Founded by Kunal Bajaj in 2016, Clearfunds provides a mutual fund investment platform that leverages data analytics and automated processes to facilitate a seamless investment experience to its users. The startup uses sophisticated algorithms, coupled with data analytics to recommend mutual fund based on the preferences of its users.
Clearfunds has around $45 million worth of assets under advisory, allowing its customers access to more than 3,000 direct mutual fund schemes, across all 36 Mutual Fund Companies (AMCs).
Other players in the wealth management domain competing with MobiKwik include Paytm, Fisdom, mutual fund investment app, Scripbox, online investment service, Tauro Wealth, WealthTrust, TipBazaar, among many others.