Cashe, a consumer credit provider, has entered the wealth management space with the all-cash acquisition of Gurugram-based investment platform Sqrrl Fintech. The transaction is subject to regulatory approval.
Cashe received Rs 140 crore in equity funding in January from its Singapore-based holding company, TSLC Pte Ltd, during which the company revealed its intention to enter the wealth management space. As part of the agreement, Sqrrl’s 10-person team will join Cashe, with the founders joining the digital lender’s senior leadership.
Cashe will now offer mutual funds, fixed deposits, and other investment options to its customers due to the acquisition. Sqrrl will retain its identity and continue to operate as a standalone platform.
Cashe, which was founded in 2016, offers customers digital lending products such as personal loans, credit lines, and buy-now-pay-later (BNPL) services. It claims to have 20 million customers and makes loans worth Rs 200-220 crore every month.
They intend to broaden their offerings to include investment and insurance products as part of their overall strategy. Their most recent fundraiser was also for this expansion. But what’s important is that with the Sqrrl acquisition, they now have a wealth-tech platform that allows their customers to save and invest now. Sqrrl was the right fit because they saw the opportunity to scale it instead of other well-funded wealth-tech players, stated V Raman Kumar, Founder, and Chairman at Cashe.
Sqrrl is a ‘goal-based’ investment platform that was founded in 2017. It has assets under management (AUM) of approximately Rs 80-100 crore, over 500,000 app downloads, and customers in over 600 Indian cities.
It provides users with access to over 5,000 mutual fund schemes from 28 different mutual fund houses. After the acquisition, Cashe plans to increase Sqrrl’s loan book to Rs 1,000 crore by the end of the year.
They are thrilled to be joining Cashe. This move will help the business improve even more by making Sqrrl’s investment products available to Cashe’s massive customer base with just a few clicks. They will continue to focus on their strategy, which is centered on stable and sustainable growth in the wealth management business, stated Sqrrl cofounder Samant Sikka.
CASHe is a credit-enabled financial technology platform that provides a wide range of consumer lending products and services to salaried millennials, such as personal loans, Buy Now Pay Later, Credit Line, payments, and transfer facilities, via its proprietary credit rating algorithm, the Social Loan Quotient (SLQ). CASHe, headquartered in Mumbai, India, has disbursed loans totaling Rs 2,500 crores to 3 lakh customers, with over 70% of them returning.
For more information, visit https://www.cashe.co.in/