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May 18, 2022

Walmart-backed PhonePe to buy two wealth management firms in India

Walmart-backed Indian payment firm PhonePe is set to acquire two wealth management firms in a deal valued at $75m, Bloomberg has reported. 

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  • 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
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PhonePe plans to buy WealthDesk for $50m and OpenQ for around $25m including debt, sources familiar with the matter told the publications. 

The proposed deal was confirmed by a PhonePe spokesperson without divulging any financial details about the deal. 

Founded in 2016, Mumbai-based WealthDesk enables customers to invest in stocks and exchange-traded funds. 

OpenQ on the other hand offers trading baskets and investment analytics services to both retail and institutional investors. 

“The founder of WealthDesk and the entire team will be working as a part of the PhonePe group and both the platforms will remain independent. Post-acquisition, OpenQ will be instrumental in creating the wealth ecosystem for the PhonePe group,” the payment firm said in a statement. 

The acquisition will allow PhonePe to expand its suite of offerings in the payments space where it faces competition from the likes of Google, Amazon and Paytm.

Walmart’s move comes after the US e-commerce giant Amazon forayed into the Indian wealth management space by investing in smallcase in August last year.

Founded in 2016, smallcase offers direct indexing and model portfolio platforms to users.

Walmart-backed e-commerce major Flipkart owns around 87% stake in PhonePe and the US retail giant directly owns a 10% stake in the payments firm.

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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