Bengaluru-based fintech unicorn CRED is said to have finalized the acquisition of Sequoia Capital-backed wealth management company Smallcase for a consideration of around $400 million. CRED is a members-only credit card management and bill payment platform.
The development comes at a $6.4 billion valuation in June in a fundraising round led by CRED’s $140 million, Singapore sovereign wealth fund GIC. A portion of the proceeds from CRED is expected to be used to finance the acquisition.
Smallcase works with capital market participants (including brokerages, advisors and digital wealth platforms) to offer investment products called “Smallcases”. Smallcases are portfolios of stocks or exchange-traded funds (EFTs) maintained by financial experts and advisors. The final investment transaction is done through the brokerage partners registered on the platform.
It is said that the funding discussions between the two companies have been going on for a few months now. Initially, CRED had no plans to acquire Smallcase. However, as talks between the two sides progressed, a buyout for the Kunal Shah-led company seemed an attractive investment option.
