The mobile wallet turned fintech company, MobiKwik has acquired the online wealth management entity, Clearfunds for an undisclosed amount. This is MobiKwik’s first acquisition as it makes its way into the wealth management business.
As per the press release by MobiKwik, it reveals its plan to invest $15 million over the following year to push the wealth management business. The acquisition of the mutual funds platform, Clearfunds will strengthen the firm’s hold over the digital financial services sector.
Once the acquisition is complete, the founder and CEO of Clearfunds, Kunal Bajaj will lead the wealth management segment of MobiKwik. Bajaj has been in the financial services sector for more than 18 years and has worked in many prestigious companies like JP Morgan, Goldman Sachs, Credit Suisse, and Jefferies India.
Once MobiKwik starts offering services by Clearfunds, the 107+ million users will be able to start savings through mutual funds with an amount starting from as low as Rs.100.
The news about the acquisition comes one month after Paytm started selling mutual funds through Paytm Money Ltd.
MobiKwik’s collaboration with Clearfunds will help the company offer more than 3,000 mutual fund schemes, offered by 36 fund companies, 4 registrars, and transfer agents, to its growing customer base. Clearfunds currently has assets worth $45 million and will give MobiKwik a headstart to the business.
Clearfunds was created in 2016 and is a unique investment platform that makes use of automated processes and data analytics to help customers experience the best investment at costs as low as they can be. It has an automated investment advisory feature that makes the investment process easy for the customers.