Niyo Solutions Inc., which operates neo-banking startup Niyo, has acquired mutual funds-focussed investment platform Goalwise.
Niyo said the company along with its co-founders – Vinay Bagri and Virender Bisht – has picked up a majority stake in Alphafront Finserv Pvt. Ltd, which runs the mutual fund platform, in a cash-and-stock deal.
Niyo did not disclose the financial or equity details of the transaction.
Goalwise’s founding members will join Niyo’s leadership and head a unit – Niyo Wealth – as an independent vertical within the company.
The overall acquisition is in line with the neo-banking firm’s goal of building a comprehensive product suite for its user base, Niyo said.
“We strongly believe in the importance of investing and helping our customers achieve their life goals of financial stability and independence. The acquisition of Goalwise is a significant step in that direction,” Bagri said.
Goalwise co-founder and chief executive officer Swapnil Bhaskar said the move would also help in accelerating product roadmaps and introducing more financial products for the two firms’ combined customer base.
Goalwise – set up by Bhaskar, Ankur Choudhary, and Savitri Bobde in 2015 – has more than 60,000 users on its platform with Rs 850 crore in assets under management. Its audience mainly consists of salaried millennials in Tier-I locations with a median income of Rs 10 lakh.
In May 2016, VCCircle exclusively reported that the financial-technology startup had raised funding from a group of high net-worth individuals (HNIs). At the time, Bhaskar said that the investors were associated with the financial services sector.
Niyo – also set up in 2015 - has offices in Bengaluru, Delhi, and Mumbai with a sales presence in over 20 states and union territories.
The company says it offers co-branded products in partnership with banks. These include services for blue-collar workers, international travellers, and millennials.
In July last year, Niyo raised $35 million (around Rs 240.2 crore) in a Series B funding round from investors including Chinese conglomerate Tencent, Horizons Ventures, and JS Capital.
The company said it would use that capital to offer digital banking solutions to its retail and small and medium enterprise customer base.