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.
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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.
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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.
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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.
