The Kunal Shah-led fintech platform Cred is set to acquire online wealth management start-up Kuvera for an undisclosed amount, the company said in a statement.

This would mark the fintech platform’s entry into the mutual funds market, where it will compete with industry leaders such as Zerodha, Groww, and others.

“Kuvera is popular among financially savvy Indians; their products and vision are aligned with CRED’s principle of investing for long-term value creation, rather than short-term entertainment. Look forward to working and sharing learnings with the Kuvera team in our mutual intent to enable financial progress,” said Kunal Shah, Founder, CRED.

Kuvera’s 50-member team, the founders, will join the larger product team at Cred, post the acquisition. The company will continue to operate independently, while collaborating closely with Cred’s leadership to enhance the network, brand and distribution, according to the statement.

Founded in 2016 by Gaurav Rastogi and Neelabh Sanyal, Kuvera allows users to invest in direct mutual funds, digital gold, fixed deposits, Indian and US stocks. It has around 3 lakh users, with assets under management of around Rs 50,000 crore.

The average per month investment in a mutual fund SIP through Kuvera stands at Rs 5,000, which is higher than the industry average. Even for a Kuvera user, the total investment in mutual funds is around Rs 12 lakh, higher than industry standards, the statement added.

Kuvera has secured $10 million in funding, with the last round of $5 million being led by Fidelity in 2021.

“Through our engagement with CRED we realised that our core values of transparency, user value and simplicity are aligned with each other. Together with CRED, we see an exciting opportunity to fast-track building new products and features for our community, while also bringing a trusted wealth management solution for millions more,” said Gaurav Rastogi, Founder, Kuvera.

Founded by Kunal Shah in 2018, CRED was valued at more than $6 billion last year, and has around 12 million users. In the fiscal year 2023, Cred’s total income rose 3.5 times to Rs 1,484 crore, from Rs 422 crore the previous year. Its losses went up marginally to Rs 1,347 crore, from Rs 1,279 crore in the previous year.