MobiKwik Buys Mutual Funds Platform Clearfunds
MobiKwik bought Clearfunds to enter mutual fund distribution as its expands its financial services business.
The mobile wallets company, without disclosing the financial details of the deal, said its 107 million customers will also be able to start investing in mutual funds. MobiKwik users will now be able to start their investing journey with as little as Rs 100, said Upasana Taku, co-founder and director at MobiKwik, in a statement. “This is the first-ever acquisition by MobiKwik as we look to build out our full-stack fintech platform and deliver more financial products to our customer customer base.”
The buyout comes a month after Paytm started selling mutual funds through a separate platform, Paytm Money Ltd.
Kunal Bajaj, founder and chief executive officer of Clearfunds, will lead MobiKwik’s mutual fund distribution business after the acquisition. MobiKwik said it will invest $15 million (Rs 110 crore) over the next year to expand the business.
Founded in 2016, Clearfunds uses data analytics and automated processes to help users invest in mutual funds. It has $45 million worth of assets under advisory and allows clients to access over 3,000 direct mutual fund schemes across all 36 fund houses and four registrar and transfer agents.