CRED forays into wealth management space by acquiring Kuvera

Fintech unicorn CRED, led by Kunal Shah on Tuesday announced its foray into the wealth management sector with the strategic acquisition of Kuvera, an online platform specializing in mutual funds, stocks, fixed deposits, and US stocks. This move marks CRED's fifth acquisition since its inception and its second within the past year.

Kuvera, founded in 2016 and operated by Arevuk Advisory Services Pvt. Ltd., has established itself as a preferred choice for India's affluent investors, managing assets over $1.4 billion for a user base of 300,000. The platform boasts an average monthly Systematic Investment Plan (SIP) contribution of Rs 5,000, which is more than double the industry standard, and total mutual fund investments averaging over Rs 12 lakh, quintupling the industry norm.

Despite not disclosing the financial details of the deal, CRED confirmed that the acquisition includes both cash and stock components. Post-acquisition, Kuvera will continue to operate independently while collaborating closely with CRED to expand its network, ecosystem, brand, and distribution. Kuvera's customers can rest assured that their accounts, portfolios, and ongoing investments will remain unaffected.

The acquisition aligns with CRED's vision of empowering its members to achieve their financial goals and leverages Kuvera's significant "affluent" investor community for potential cross-selling opportunities. It also allows CRED to offer its users a broader range of financial products, including payments, loans, and insurance.

CRED's competitive landscape has now broadened, positioning it alongside other prominent players such as Groww, AngelOne, Upstox, and Paytm Money in the wealth management domain. This strategic move comes at a time when CRED, known for incentivizing good financial behavior and offering services like e-commerce and lending, is looking to enhance its wealth management offerings.

With this acquisition, CRED continues to build upon its reputation as a trusted ecosystem for financially savvy Indians, fostering long-term value creation over short-term entertainment.

Kunal Shah, founder, CRED, said, “Excited to welcome Kuvera and their team into the high-trust CRED ecosystem. Kuvera is extremely popular among financially savvy Indians; their products and vision are aligned with CRED’s principle of investing for long-term value creation rather than short-term entertainment. Look forward to working and sharing learnings with the Kuvera team in our mutual intent to enable financial progress.”

Gaurav Rastogi, founder, Kuvera said, "Through our engagement with CRED we realized that our core values of transparency, user value and simplicity align beautifully with each other. Together with CRED we see an exciting opportunity to fast-track building new products and features for our community while also bringing a trusted wealth management solution to millions more."

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