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Grapevine: InCred, others circle Reliance Wealth Management; Tencent may back KhataBook
Photo Credit: VCCircle

Investors including non-banking financial company InCred Finance are eyeing a possible bid for Anil Ambani’s Reliance Wealth Management, put up for sale as part of a strategy to sell non-core assets to repay debt, two people familiar with the matter told The Economic Times.

If InCred closes the deal, it will pave the way for the firm’s entry into the wealth management industry. It could rope in an industry veteran to head the venture, said the people.

The deal valuation could not be ascertained, the report said. Since April, the profitability of the wealth management industry has been affected by a Securities and Exchange Board of India (SEBI) move to curb commissions that mutual funds pay to distributors and investment advisors. They could be squeezed further once the capital market regulator tightens distributor fees for portfolio management services, the report added.

Also, two persons in the know told Entrackr said that China’s Tencent Holdings, the world’s largest gaming company by revenue, and GGV Capital are investing up to $85 million (Rs 610.3 crore at current exchange rate) in a new Series B round in KhataBook, a startup which provides accounting and business record-keeping services for small merchants and entrepreneurs.

While Tencent will be putting about $70-75 million, the remaining $5-10 million will come from GGV, added the persons. The deal, if it goes through, will mark Tencent’s first pure-play business-to-business investment in India. KhataBook is owned and operated by Kyte Technologies Inc.

In July, The Economic Times had reported that DST Partners, Ribbit Capital and Sequoia Capital may take part in KhataBook’s Series A funding.

Separately, Kaizen Management Advisors Pvt. Ltd is nearing the final close of its second private equity fund at about $90 million (Rs 645.7 crore at current exchange rate), persons in the know told DealStreetAsia, adding that the education sector-focused private equity firm plans a $150 million (Rs 1,076 crore at current exchange rate) social-impact fund.

In December 2018, VCCircle said that Kaizen had invested, along with others, in Mumbai-based Toppr Technologies Pvt. Ltd, which runs an eponymous ed-tech startup.

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