Fintech unicorn CRED has acqui-hired the Y Combinator-backed microsaving and investment app, Spenny, for an undisclosed amount.
Spenny cofounder Rathin Shah to the twitter on Friday disclosed that, "The work of CRED and with Kunal (Shah) has done to inculcate positive financial behavior has been an inspiration. We're excited to start a new journey working with the CRED team to take this mission forward. Onwards and upwards."
The Bengaluru based startup, founded in 2019 by Shah and Gaurav Arora allows customers to increase the investing population of India from 3% to 15% in the next 5 years by creating investment products that are easy, fast, automatic and fun. The platform invests these amount in digital gold or a diversifies mutual fund portfolio.
Some founding team members including Rathin Shah will also join the product team at CRED, whereas Spenny will continue to function independently, according to reports.
Taking over a company for its employees’ skills rather than its products or services is known as “acquihiring,” according to CRED.
CRED experienced a substantial growth in revenue, with a staggering increase of around 340% to reach INR 422 crore compared to the previous year. However, it also incurred a net loss of INR 1,279 crore in the financial year 2022, according to reports.
