Sachin Bansal plans to foray into mutual fund space, aims to acquire Essel Mutual Fund : Report

Sachin Bansal, co-founder of Flipkart, is, reportedly, entering into the mutual fund space with an aim to acquire Essel Mutual Fund, according to a report, cited Inc42.

If the acquisition goes through, then Bansal is said to plan a digital asset management platform, as per the reports. While, multiple meetings have already taken place between both the parties in Mumbai, according to the report. 

Earlier this year, a Deloitte India report has estimated digital-invested assets under management (AUM) to grow by around 80% from approx INR 250 Bn in 2018 to INR 450 Bn in 2019.

While, digital investing is expected to grow at more than double the rate of overall investment in mutual funds.

On the other hand, in February, Bansal was reported to be in talks with financial experts on the potential to launch a new venture in the fintech sector.

He had also reportedly met Reserve Bank of India executives to figure out the eligibility requirements for starting a bank.

Different digital channels for investing in mutual fund accounted for around INR 250 Bn in AUM in FY18; this is still a meagre 2.3% share of the overall AUM of individual investments in mutual funds.

Deloitte predicted that such digital channels will see a 75% increase in AUM and account for around INR 450 Bn of AUM by FY19.

Other players in the Indian personal wealth management space include JioGenNext-incubated Sqrrl, Times Internet’s ETMONEY, and Sequoia-backed venture Groww, among others.

The Indian fintech software market is estimated to reach $2.4 Bn by 2026.

Furthermore, in April this year, Bansal was also reported to be in acquisition talks with as much as 75 per cent stake in Bengaluru-based Chaitanya Rural Intermediation Development Services which runs a microfinance institution, Chaitanya India Fin Credit (CIFCPL) in a deal worth INR 200 Cr.


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