Fintech powerhouse CRED has ventured into wealth management through its latest acquisition of Kuvera, a prominent mutual fund investing platform. This strategic move marks CRED’s fifth acquisition under the leadership of Kunal Shah and its second within the past year, signalling a robust expansion strategy for the unicorn company.
While the exact financial details of the deal remain undisclosed, it’s confirmed to involve a combination of equity and cash components. Established in 2016, Kuvera has carved a niche as an online wealth management platform catering to various investment options, including mutual funds, stocks, fixed deposits, and US stocks.
One of Kuvera’s standout achievements lies in its impressive user metrics, boasting an average SIP size exceeding Rs 5,000—double the industry norm—and a total mutual fund investment exceeding Rs 12 lakh, five times higher than the industry average. Following the acquisition, Kuvera will continue to operate autonomously, with its founders, team, and product remaining intact. However, they will collaborate closely with CRED’s leadership to amplify their network, bolster brand presence, and expand distribution channels.
Despite Kuvera’s commendable performance, its financials reveal a decline in revenue from operations in FY23, coupled with increased losses. Nevertheless, its potential for growth and synergy with CRED’s ecosystem remains promising. CRED’s acquisition spree, which includes previous acquisitions such as CreditVidya, HipBar, and Happay, underscores its ambition to diversify its offerings and consolidate its position in the competitive fintech landscape.
With this latest move, CRED enters the fiercely contested wealth management arena, facing off against established players like Zerodha, Groww, AngelOne, Upstox, Paytm Money, and others. As the company continues to broaden its horizons, the stage is set for an exciting chapter in CRED’s journey towards innovation and expansion.
