Mobikwik acquires online mutual fund platform Clearfunds

BENGALURU: Payments firm Mobikwik on Wednesday acquired Mumbai-based online

mutual fund

(MF) platform

Clearfunds

in an all-stock deal to enter the wealth management space. From being a pure-play wallet player, Mobikwik, like its larger rival Paytm, has entered into different verticals such as digital lending, B2B payments, insurance, etc.


"This acquisition is in line with our vision of becoming a full-stack payments firm, where we are the one-stop for all financial needs," said Upasana Taku, cofounder, Mobikwik.

Founded in 2016, Clearfunds currently has $45 million assets under management (AUMs) and Mobikwik plans to invest $15 million into the new business over the next year. With the deal, Clearfunds, which sells zero commission direct mutual funds, will have access to Mobikwik's 107 million customer base.

"Sebi has pointed out the need for more robo advisories in the space to make MFs accessible to the masses -- so we see a business opportunity of $250 million as we now gain access to Mobikwik's 100 million plus customer base," said Kunal Bajaj, founder, Clearfunds.

Bajaj will lead Mobikwik’s wealth management business. Bajaj has worked with brokerages such as Goldman Sachs, Credit Suisse and JP Morgan and last headed Jefferies India, before starting his own venture.

"We were the first to introduce direct MFs with zero commission online. We use data analytics and automated processes to deliver the best possible investment advice at the lowest cost. Our vision is to bring MFs and wealth management advisory to the masses," said Bajaj.

"MobiKwik users can now start investing with as little as Rs 100," said Taku.