CASHe enters wealthtech space with Sqrrl acquisition

Aeries Financial Technologies Pvt. Ltd, which owns the fintech firm CASHe, has entered the wealth management industry with the all-cash acquisition of Gurgaon-based wealth tech platform Sqrrl.

CASHe obtained Rs 140 crore (about $18.7 million) in equity capital in January from its Singapore-based parent firm, TSLC Pte Ltd. Notably, the business claimed in a statement on Tuesday that this transaction will be mostly backed by its excess resources.

Sqrrl, which debuted in 2017, is a mobile-first wealth management platform aimed at millennials and Gen Zs, allowing them new opportunities to invest and increase their earnings.

It offers five investment options: mutual fund investing (SIP/Lumpsum), goal-based investing, Axe Tax (tax saving programmes), Sqrrl Away (round-up investing or micro-investing), and fixed deposit.

The network claims to service over five lakh customers from 20,000 pin codes in over 600 cities, with over 55 per cent of its users hailing from India’s top 30 cities.

“We are thrilled to be joining CASHe – a firm with significant expertise and enthusiasm in assisting Generation Z and millennials to accomplish their financial goals.” “By delivering Sqrrl’s investment products to CASHe’s vast client base with only a few clicks, we will be able to expand the business even further,” stated Samant Sikka, Co-Founder, Sqrrl.

Founded in 2016 with the aid of using V. Raman Kumar, CASHe is a private mortgage app and virtual lending platform focused on millennials and Gen Z in India.

Besides private loans, it provides ‘purchase now, pay later’ merchandise to salaried people thru an app and a proprietary underwriting set of rules primarily based totally on exchange data.

Since its launch, CASHe stated it has registered over 20 million app downloads at the app keep and has allotted loans of over Rs 4,000 crores to over 4 lakh customers.

“The acquisition of Sqrrl is a crucial milestone for CASHe’s imaginative and prescient 3.0 roadmaps because it units the degree for the subsequent section of our increase thru our foray into the wealth tech space.

By integrating CASHe’s millennial-centred credit score-led offerings with the virtual-first wealth and funding control services of Sqrrl, we goal to seamlessly satisfy the various credit score and funding desires of the new-age Indian with the aid of using imparting multi-product get right of entry to and next-gen monetary health solutions,” stated Kumar.

This acquisition will resource in extending our attain to the subsequent billion younger Indians with the aid of using imparting them an all-new byte-sized making an investment environment masking a miles large geographical footprint,” he added.

Last year, CASHe acquired undisclosed increase capital from assignment debt organization BlackSoil Capital.

In 2017, CASHe had raised Rs 20 crore (around $three million) in debt investment from IFMR Capital. It additionally raised Rs 25 crore ($3.8 million) in Series A investment led with the aid of using Mathew Cyriac, former India co-head of personal fairness at Blackstone Group LP, withinside the equal year.