New Delhi: As the stock and mutual fund broking market, currently dominated by the likes of Zerodha and Groww, see tremendous growth, credit card bill payment leader CRED is reportedly in talks to acquire online wealth management platform Kuvera.
The acquisition talks are currently on and “a deal could be finalised within weeks,” reports TechCrunch, citing a source.
CRED or Kuvera didn’t immediately comment on the report. Founded in 2016, Fidelity-backed Kuvera allows its users to invest in Indian and US stocks, mutual funds and fixed deposits (FDs).
Kuvera has raised about $10 million to date and has assets under management (AUM) worth $1.4 billion, according to the report. CRED, valued at over $6 billion, is expanding its wealth management offerings for quite some time as the Indian mutual fund market continues to grow at a fast pace.
According to the Association of Mutual Funds in India (AMFI), the AUM of the Indian mutual fund industry is over $575 billion, up over 20 per cent from a year ago. Meanwhile, CRED said last week that its total income for FY22-23 grew by 3.5 times (around 252 per cent) to Rs 1,484 crore as compared to Rs 422 crore in FY21-22.
The fintech unicorn’s losses (excluding ESOP cost) reduced by 10 per cent from Rs 1,167 crore in FY21-22 to Rs 1,047 crore in FY 22-23, the company said in a statement.
“Five years since launch, we believe that CRED — and prudent financial behaviour — are becoming a habit for the top 1 per cent. Our focus remains on rewarding the creditworthy with more products that improve their lives and lifestyles,” said Kunal Shah, Founder, CRED.
IANS