CashRich Acquires WealthApp's MF Distribution Business The funds will strengthen the company's position as a prominent investment app in India
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Wealthtech firm CashRich on Tuesday announced the acquisition of WealthApp's mutual fund (MF) distribution business in an all-cash deal.
Though the acquisition amount is undisclosed, this deal is expected to strengthen CashRich's position as a prominent investment app in India.
The company had raised equity funding from existing UK-based investors to finance this acquisition. In 2018, the three UK-based angel investors had provided total funding of nearly $1 million.
After the acquisition, its user base will reach around 200,000. WealthApp's asset under management (AUM) has been merged with the existing AUM at CashRich.
"We are pleased to welcome and onboard all WealthApp users and will provide them the best possible service. We are continuously improving our technology to help our users build and preserve their long-term wealth. The fintech ecosystem in India is thriving because of the collaborative efforts of several stakeholders. We are grateful to our industry partners for their help in ensuring a smooth transition for WealthApp users, and would particularly like to thank Ashish Chauhan and Praveena Rai for their support," shared Sougata Basu, founder, CashRich.
The company uses BSE StAR MF platform for mutual fund transaction processing and SIP payments are facilitated by NPCI's NACH system. Thousands of SIPs were migrated from WealthApp to CashRich during the technical integration process with the help of BSE and NPCI, the company said.
"Our mission at CashRich is to revolutionize investment experience through top-notch technology and personalized investor care. We are exploring more such partnerships with other mutual fund distributors," added Hiren Dharamshi, managing director, CashRich.
CashRich is planning to expand in other financial products and increase distribution via partnerships. The company will explore more acquisitions, and has invited individual distributors as well as firms who are in the mutual fund business to get in touch to explore opportunities for collaboration.
