Kunal Shah's CRED has made a strategic move into the wealth management sector with its acquisition of Kuvera, an investment technology platform. The transaction, which comprises both cash and stock components, aims to position CRED as a key player in the competitive wealth management space, challenging existing giants like Zerodha, Groww, and PhonePe. While the exact financial terms of the acquisition were not disclosed, the deal signifies CRED's commitment to diversifying its fintech offerings.
Kuvera, one of the top five direct mutual fund platforms in India, boasts a community of over 300,000 users managing assets exceeding INR 50,000 crore. In addition to mutual fund investments, Kuvera allows its users to invest in Indian and US stocks, as well as fixed deposits. Following the acquisition, Kuvera's founders and entire team will continue to operate independently, collaborating closely with CRED's leadership to expand their network, ecosystem, brand, and distribution.
This acquisition marks a significant step for CRED, following the shelved acquisition of smallcase nearly two years ago. Kuvera, founded in 2016 by Gaurav Rastogi, Neelabh Sanyal, and Mayank Sharma, previously raised INR 37 crore from Fidelity in September 2021, accumulating approximately $10 million in total funding.
CRED, initially established as a credit card payment platform in 2018 by Kunal Shah, has since diversified its service offerings in the fintech sector. Over the past year, the company has introduced several new services, including CRED Garage (a vehicle management platform), CRED Escapes (a curated travel platform), Flash (a buy now pay later product), tap-to-pay solutions for retail payments, and a scan-and-pay feature for UPI payments.
CRED's growth has been accompanied by significant investments, with over $800 million raised from prominent backers, including GIC, Peak XV Partners, Alpha Wave Global, and Tiger Global. As of now, the company is valued at over $6 billion. In FY23, CRED recorded a substantial 250% increase in revenue from operations, reaching INR 1,400.6 crore, although its net loss increased by 5% year-on-year to INR 1,347.4 crore.