Indian B2B2C wealthtech platform Fintso has acquired WealthMagic, which provides software as a service (SaaS) for wealth management industry.
Financial terms of the part-equity and part-cash deal were not disclosed.
Launched in 2016 by Datacomp Web Technologies, WealthMagic is one of the largest SaaS providers to mutual fund distributors, transforming their back and front office operations.
The acquisition forms part of Fintso’s plan to take advantage of the evolving investor base in India and extend its platform to target the ‘NeXT billion investors’ across the country.
The firm said that the WealthMagic addition will allow it to offer multi-product solutions to the distributors.
Fintso co-founder and MD Rajan Pathak said: “The combined offering of Fintso and WealthMagic brings the next generation of solutions, with multi-product access, digital execution, and advisory thereby addressing the end-to-end needs of investors.
“The impact of this acquisition will be extremely long lasting as it begins with strengthening the financial entrepreneurs and democratising wealth management through technology.”
Following the deal, WealthMagic users are expected to benefit from Fintso’s financial offering suite that will enable them to expand the reach and provide access to AI-based advisory.
Additionally, this cloud-native platform will help them adopt Independent Financial Products Providers (IFPPs) model, enabling multi-product, multi-manufacturer distribution capabilities.
Fintso’s IFPP model, which promote cross-selling of products for financial entrepreneurs, is also said to facilitate last-mile connectivity needed for outreach beyond the Top 30 cities in an economic manner.
Commenting on the deal, Datacomp CEO and co-founder Ajay Arora said: “We are delighted to see WealthMagic synergising with Fintso. We believe our shared vision to provide a holistic wealth management solution will revitalise the ecosystem and help accelerate the growth of new investors from Tier 1 cities and beyond.”
Recently, Indian retail wealth management firm Prudent Corporate Advisory reportedly purchased the mutual fund business of Karvy Stock Broking.