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November 2, 2021

India’s Wealthtech platform Fintso snaps up WealthMagic

By Verdict Staff

Indian B2B2C wealthtech platform Fintso has acquired WealthMagic, which provides software as a service (SaaS) for wealth management industry.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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