CRED Expands into Wealth Management, Acquires Kuvera: A Move into Mutual Funds, Stocks, and More

• CRED, the Bengalore-based unicorn fintech company, has recently made a significant move by acquiring Kuvera.
• Kuvera is an online platform that focuses on mutual funds, stocks, fixed deposits, and US stocks.
• With this strategic acquisition, CRED is now venturing into the world of wealth management.

CRED’s acquisition of Kuvera

On February 6th, Fintech startup CRED made an important purchase by acquiring Kuvera.

Kuvera is an online platform that focuses on mutual funds, stocks, fixed deposits, and US stocks.

This acquisition signifies CRED’s entry into the wealth management industry.

Type of transaction

CRED has confirmed the acquisition includes cash and stock components, although the financial details of the deal were not disclosed.

CRED’s commitment to diversification

CRED is making this strategic move to improve its wealth management services, while also expanding its range of financial products for users. This includes payments, loans, and insurance.

How Kuvera will operate post-acquisition

After the acquisition, Kuvera will maintain its independence while working closely with CRED to grow its network, ecosystem, brand, and distribution.

Customers of Kuvera can be confident that their accounts, portfolios, and investments will not be impacted.

About Kuvera

Kuvera is a leading direct mutual fund platform, ranked among the top five.

Kuvera specializes in direct mutual funds and stocks, appealing to affluent investors through its fee-free model and fractional investing choices.

It has more than 300,000 users and manages assets worth over $1.4 billion.

About CRED

CRED, an Indian fintech firm located in Bangalore, was established in 2018 by Kunal Shah. They allow users to make credit card payments and earn rewards.

Additionally, Cred enables users to pay house rent and provides short-term credit lines.

The company’s valuation remained steady at $6.4 billion in 2023.

CRED’s leadership team

• Kunal Shah – Founder and CEO.
• Nadine Payne – Chief Financial Officer
• Harish Sivaramakrishnan: Chief Design Officer

Who is CRED backed by?

According to Traxn, CRED has 54 institutional investors, including,

• Ribbit Capital
• Peak XV Partners (formerly Sequoia Capital India & SEA)
• Tiger Global Management
• Sofina Ventures
• Insight Partners
• Coatue Management
• DST Global
• Dragoneer Investment Group
• Steadfast Capital Management.

CRED’s other acquisitions

Kuvera is CRED’s fifth acquisition since its establishment.

CRED’s other acquisitions include,

1. Happay
2. HipBar
3. CreditVidya
4. Spenny

Closing thoughts

The Indian wealth management sector is becoming more competitive.

The India Wealth Management Market was worth USD 429.1 billion in 2023 and is expected to experience strong growth in the coming years, with a CAGR of 4.56% until 2029.

With this move, CRED is now part of the landscape, joining other well-known players like Groww, Zerodha, and Upstox.