Fintech startup Niyo Solutions Inc., which operates neo-bank Niyo recently announced that it has acquired mutual funds-focussed investment platform Goalwise in a cash-and-stock deal for an undisclosed amount. The recent acquisition by Niyo comes as it looks to expand its offerings into the wealth management space.
Backed-by Tencent, Niyo said that it has picked up a majority stake in Gaolwise’s parent company Alphafront Finserv Pvt Ltd. While Niyo’s co-founders – Vinay Bagri and Virender Bisht – have picked up majority stakes in the company, Niyo itself is holding a minority stake in the startup.
However, none of the companies provided the media with any financial details of the transaction.
As part of the acquisition, Goalwise’s founding members will join Niyo’s leadership and head a unit – Niyo Wealth – as an independent vertical within the company. Goalwise will also transfer its customer base to Niyo Wealth.
Founded in 2015, Goalwise has over 60,000 users, with ₹850Cr assets under advice (AUA). The company primarily caters to salaried millennials belonging to Tier 1 cities, having a median income of ₹10 lakh.
Goalwise also offers a goal-based investing solution to customers that oversees all aspects of investment, including mutual fund selection, portfolio rebalancing and target-tracking among others.
Talking about the acquisition, Niyo said that the overall acquisition is in line with the neo-banking firm’s goal of building a comprehensive product suite for its user base.
“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.
Delaware and Bengaluru-based Niyo is backed by marquee investors such as Tencent, Social+Capital, investment firm founded by former Facebook executive Chamath Palihapitiya, JS Capital and Prime Venture Partners, and has raised about $49 million in funding so far.
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