Fintech startup MobiKwik has made its first acquisition by taking over Mumbai-based wealth management platform Clearfunds for an undisclosed amount.
The acquisition also marks its entry into the wealth management space, which Mobikwik plans to scale up by investing $15 million in the next one year.
Under the terms of the deal, founder and CEO of Clearfunds, Kunal Bajaj, will lead MobiKwik’s wealth management business, according to an official statement.
Through this move, MobiKwik’s customers will be able to start saving in mutual funds seamlessly from their MobiKwik app.
Founded in 2016, by the former Jefferies India managing director, Clearfunds offers a direct mutual fund investment platform. It 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 and four registrar and transfer agents.
“This acquisition will help us get a head start in the wealth management domain,” said Upasana Taku, Co-Founder and Director, MobiKwik.
“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,” she added.
Earlier this year, had invested Rs 2 crore ($294,000) in Pune-based data science company, Pivotchain Solutions.