CRED, an Indian fintech firm, will purchase the mutual fund and stock investment platform Kuvera to expand into wealth management.
The $6.4 billion Bengaluru-based business was drawn to Kuvera’s seasoned staff and advice and tracking tools for direct mutual fund and stock investments.
Kuvera, which manages over $1.4 billion for 300,000 users, is a popular platform for wealthy Indian investors. Monthly SIP contributions on the platform average 5,000 Indian rupees ($60), double the industry average, while cumulative mutual investment sums above $14,450 are over five times the norm. 
CRED stated Kuvera will remain a standalone app after the acquisition and will consider integrations. As part of the transaction, CRED will hire 50 Kuvera employees.
“Through our engagement with CRED, we realized that our core values of transparency, user value, and simplicity align beautifully,” said Kuvera co-founder Gaurav Rastogi. We see an exciting opportunity to fast-track producing new products and services for our community and deliver a trusted financial management solution to millions more with CRED.
CRED was in discussions to buy Kuvera last year, Eltrys reported. The businesses said the purchase combines cash and shares. The deal’s worth was kept secret. The transaction followed $10 million in private funding for Kuvera. After the transaction, Fidelity will own CRED.
“Excited to welcome Kuvera and their team into the high-trust CRED ecosystem,” creator Kunal Shah remarked.
Kuvera is popular among financially aware Indians, and its goods and vision coincide with CRED’s focus on long-term wealth generation rather than short-term enjoyment. I hope to collaborate and learn with the Kuvera team to advance finances.”
CRED’s interest in Kuvera comes as the Indian financial behemoth, which services wealthy consumers, expands its operations. The app was established six years ago to help customers pay their credit card payments on time. After adding several financial incentives, it expanded to e-commerce and financing.
For some time, the firm has considered expanding its wealth management services. It failed to sign an agreement with Bengaluru-based Smallcase in 2022. In the past three years, CRED has invested in LiquiLoans, CredAvenue, and HapPay.
A third of Indian credit card payments go through CRED, which can profit from mutual funds.
The Indian mutual fund market is one of the largest and fastest-growing. The Indian mutual fund industry’s assets under management (AUM) are above $575 billion, up 20% from a year earlier, according to AMFI. However, 90% of the public still doesn’t invest in mutual funds and equities.
