Walmart-owned digital payment app PhonePe is all set to buy wealth management firms WealthDesk for about $50 million and OpenQ for around $20 million.
At the beginning of this year, PhonePe applied to the Securities and Exchange Board of India (Sebi) for a mutual fund (MF) licence in order to set up an asset management company (AMC).
The company has confirmed about the acquisition of WealthDesk and OpenQ, but did not reveal the value of the transaction.
“PhonePe is acquiring WealthDesk. The founder and the entire team will be working as a part of the PhonePe group and both the platforms will remain independent,” a PhonePe spokesperson said.
The spokesperson also mentioned that founder Ujjwal Jain will continue to oversee WealthDesk and it will remain open to all players.
“PhonePe is also acquiring OpenQ, subject to necessary regulatory approvals,” the spokesperson said. “OpenQ is a smart beta wealth management platform, which designs investment strategies and optimal portfolio construction advice. Post-acquisition, OpenQ will be instrumental in creating the Wealth Ecosystem for the PhonePe Group.”
PhonePe forayed into financial services in 2017 by allowing the trading of gold on its platform, and later silver. It has since introduced several mutual fund and insurance products like tax-saving funds, liquid funds, international travel insurance, and life insurance.
In the future, PhonePe expects almost half of its revenue to come from financial services. The company also plans to tap the merchant lending space and stock broking, apart from its aim of building an asset management company.