Kuvera is acquired by Kunal Shah’s CRED as a competitor for Zerodha and Groww

Cash and stock would be used in the transaction, according to CRED. The startups, however, withheld the full cost of the transaction.

In addition to mutual funds, Kuvera lets consumers purchase US and Indian equities as well as fixed deposits.

Following the acquisition, Kuvera’s founders and whole staff will carry on with their own business while collaborating closely with CRED leadership.

In order to compete with companies like Zerodha, Groww, and PhonePe in the rapidly expanding wealth management market, Kunal Shah-led CRED has purchased investech platform Kuvera.

A mix of cash and shares would be used in the transaction, according to a statement from CRED. The startup, however, kept the full amount of the deal.

With a user base of over 3 lakh and the ability to track over INR 50,000 Cr in assets, Kuvera is among the top five direct mutual fund platforms in the nation.

In addition to mutual funds, Kuvera lets customers invest in US and Indian equities as well as fixed deposits.

Following the acquisition, Kuvera’s founders and whole team will carry on with their independent business while closely collaborating with CRED leadership to expand the company’s network, ecosystem, brand, and distribution.

The purchase was made over two years after CRED’s attempted acquisition of smallcase was unsuccessful.

Gaurav Rastogi, Neelabh Sanyal, and Mayank Sharma founded Kuvera in 2016. In September 2021, the company received INR 37 Cr from Fidelity. Thus far, it has successfully raised approximately $10 million in finance.

The acquisition takes place at a time when CRED, a fintech company that began as a platform for credit card payments, is growing and branching out into other areas.

About a year ago, CRED introduced several new products, including the buy now pay later (BNPL) product Flash, the vehicle management platform CRED Garage, the curated holiday site CRED Escapes, the tap to pay offering for retail payments, and the scan and pay function for UPI payments.

Kunal Shah founded CRED in 2018, and since then, it has raised more than $800 million in capital. With investors including GIC, Peak XV Partners, Alpha Wave Global, and Tiger Global, the startup is valued at more than $6 billion.

While CRED’s net loss rose 5% year over year to INR 1,347.4 Cr, its operating revenue jumped 250% to INR 1,400.6 Cr in FY23 from INR 393.5 Cr in FY22.