Mutual fund investing platform Kuvera acquired by CRED to enter wealth management space

With the acquisition of mutual fund investing platform Kuvera, fintech unicorn CRED has entered the wealth management market. For the Kunal Shah-led company, this is the second acquisition in the last 12 months and the fifth since its founding.

CRED issued a press release confirming the acquisition, but it withheld the deal’s total value. The deal consists of both cash and equity components.

Kuvera is an online wealth management platform for US stocks, mutual funds, fixed deposits, and stocks. It was founded in 2016. According to a joint statement from Kuvera and Cred, the average SIP size of Kuvera investors is over Rs 5,000, which is two times higher than the industry average. Additionally, their total mutual fund investment of over Rs 12 lakh is five times higher than the industry average.

The founders of Kuvera, the team, and the product will all carry on independently after the acquisition. Additionally, they will collaborate closely with Cred leadership to scale the company’s distribution, brand, network, and ecosystem. Additionally, the account, portfolio, and all active investments of Kuvera customers won’t change.

Kuvera has so far received $10 million in funding from EightRoad Ventures, Fidelity, and a number of angel investors. Kuvera saw a 70% decline in operating revenue to Rs 89 lakhs in FY23, but a 10% increase in losses to Rs 38.1 crore.

In the past, CRED has acquired CreditVidya in November 2022, HipBar, a startup that sells and delivers alcohol, and Happay, a startup that handles expenses, in October and November 2021, respectively. In September 2022, it also bought a small portion of LiquiLoans.

CRED now has a wider range of competitors thanks to this acquisition, including Groww, AngelOne, Upstox, Paytm Money, and several more.