CashRich, a prominent wealth-tech firm, on Tuesday announced the acquisition of WealthApp's mutual fund distribution business in an all-cash deal.
Though the acquisition amount was not disclosed, this deal is expected to strengthen CashRich's position as a prominent investment app in India, the wealth-tech firm said in a statement.
The company had raised equity funding from its existing three UK-based investors to finance this acquisition.
Post the acquisition, CashRich's user base will reach around 2 lakh.
WealthApp's asset under management (AUM) has been merged with the existing AUM at CashRich.
"The fintech ecosystem in India is thriving because of the collaborative efforts of several stakeholders," Sougata Basu, founder, CashRich said.
CashRich is an app where individuals can invest in mutual funds and buy insurance products easily. Its unique approach of dynamic systematic investment plan (SIP) helps retail investors to automatically build wealth during volatile markets.
CashRich said it is planning to expand in other financial products and increase distribution via partnerships.
The company said it will explore more acquisition opportunities and has invited individual distributors as well as firms who are in the mutual fund business to get in touch to explore opportunities.
CashRich's mutual fund processing is done using the BSE Star MF platform and SIP mandates are through National Payment Corporation of India's NACH platform.