One of the most popular digital payments company in India Mobikwik has reportedly announced the acquisition of online wealth management platform called Clearfunds. With this move, the mobile wallet seems to foray into the country’s wealth management market.
The amount of the acquisition deal, however, has not been disclosed yet. Clearfunds is an online mutual fund investment platform based out of Mumbai. The digital payments major stated that it would be investing $15 million in the coming next years’ time to accelerate its wealth management business.
“MobiKwik users will now be able to start their investing journey with as little as Rs. 100,” Upasana Taku, Co-Founder and Director, MobiKwik stated. “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.”
This acquisition marks the first ever acquisition of the company which is expected to strengthen its foothold in the digital financial services sector. This has come just a month after rival Paytm launched its Paytm Money wealth management unit.
Clearfunds was founded in 2016 and is a direct mutual fund investment platform that makes use of powerful data analytics and automated processes to offer the best possible investment experience at the lowest possible cost.
Mobikwik claimed to have a user base of 107 million plus customers who will soon be able to start saving in mutual funds easily from their MobiKwik app. As a part of the deal, Clearfunds Founder and CEO Kunal Bajaj will lead MobiKwik’s wealth management business. The company uses computer algorithms to build, monitor and rebalance diversified mutual fund investment portfolios.