Friday, 12 October 2018

MobiKwik acquires ClearFunds

Digital payments company MobiKwik has acquired online mutual fund platform ClearFunds as it pivots towards a complete fin-tech company facing tough competition from market leader Paytm, owned by One97 Communications Ltd.

Founded in 2016, Clearfunds (Harvest Fintech Private Limited) is an online mutual fund advisory platform that claims to use data science and analysis to help investors make informed and profitable investment decisions. It claims to have $45 million in assets under management (AUM).
MobiKwik, which has a customer base of 100 million, will now sell only direct plans on its platform that comes without distributor commissions. Paytm Money, the new wealth management unit of One97 Communications Ltd, entered the mutual fund market with its own application in April this year.

The Gurugram-headquartered company will invest $15 million in its wealth management category in the next year to take on competitors like Paytm, which in turn is reportedly looking to offer shares of listed companies directly to customers. MobiKwik recently entered digital lending services by offering 90-second loans to its users in a bid to compete with Soft-bank backed Paytm.

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