India-based fintech startup CRED has agreed to acquire mutual fund and stock investment platform Kuvera in a move to foray into the wealth management sector.

The financial terms of the deal were not disclosed.

Established in 2016, Kuvera facilitates investments in direct mutual funds, digital gold, fixed deposits, and in Indian and US stocks. The firm is said to have approximately three lakh users with assets under management of around INR500bn ($6bn).

The firm had also raised $10m in funding. Its last round of $5m was led by Fidelity in 2021.

CRED, which is headquartered in Bengaluru, is a members-only club that rewards individuals for their timely credit card bill payments by offering them exclusive offers and access to premium experiences. The firm was founded by Kunal Shah in 2018.

The platform enables credit card users to manage multiple cards along with an analysis of their credit score.

Shah said: “We have a new partner whose alignment with these values has resulted in one of India’s most trusted mutual fund investment platforms. Kuvera – soon to be a part of CRED – has built a loyal community of affluent investors by making the powerful tool of compounding delightful and easy to use.”

As part of the acquisition, Kuvera’s 50-person team will be absorbed into CRED.

Upon the closing of the deal, Kuvera will continue to function as an independent app. Both firms intend to explore integrations in the future.

Kuvera founder Gaurav Rastogi has been quoted by various media as saying: “Through our engagement with CRED we realised that our core values of transparency, user value and simplicity are aligned with each other.

“Together with CRED, we see an exciting opportunity to fast-track building new products and features for our community, while also bringing a trusted wealth management solution for millions more.”