CRED, a members-only bill payment platform, has announced that it would acquire Happay, a homegrown corporate expense management platform. With the payments-only businesses coming under a cloud, most companies in the space are looking to innovate and offer value added services to consumers. The acquisition of Happay will give CRED access to a new customer segment. The deal values Happay at $180 million and the acquisition is likely to be a combination of cash and stock.
Post the acquisition, Happay will operate as a separate entity and the team will work closely with the leadership of CRED to leverage on the ecosystem, build distribution, expand the product offering and drive scale.
Kunal Shah, founder, CRED, said, “With professional expenses forming a significant portion of credit card spends, bringing professional expense management into the CRED ecosystem is a natural extension of our proposition. Happay’s product strength, customer experience, and vision align with our intent at CRED to reward responsible financial behaviour and we are excited to partner them in their journey towards leading the category.”
Happay is a business expense, payments and travel management platform serving over 6,000 businesses. It manages work-related expenses for over 1 million users globally with $1 billion in annual spends, and it claims it is the leader in its category. Happay’s software stack and in-house payment engine along with its ease of use will complement the card management services that CRED offers to its members for their personal expenses, the company said. Anshul Rai, co-founder and CEO, Happay, said, “The next phase of our growth will come from building scale, brand, and distribution. The CRED team’s experience in this regard is unparalleled, and we are excited to learn and grow together.”