Over $1.8 trillion, as per industry reports, has been stashed by Indian customers in bank deposits indicating that they refrain from putting money in capital markets due to reasons such as poor financial literacy, lack of trust in the stock market, etc.
Tencent-backed fintech startup Niyo, which offered co-branded financial products in partnership with banks, has acquired mutual funds investment platform Goalwise to expand its offerings for millennials. Niyo’s co-founders Vinay Bagri and Virender Bisht have acquired the majority stake in Goalwise in a cash-and-stock deal for an undisclosed sum. Announcing the deal on Tuesday, Niyo said that founding members and leadership team at Goalwise will join Niyo to operate an independent arm called Niyo Wealth.
Niyo already offered a DIY zero per cent commission mutual fund product suite for customers and is now planning to provide “international and domestic stocks, robo-advisory and auto-invest products in the next few months,” the company said. “We strongly believe in the importance of investing and helping our customers achieve their life goals of financial stability and independence. The acquisition of Goalwise is a significant step in that direction,” said Bagri.
Niyo claimed to be among the first fintech companies in India to launch a co-branded savings account offering banking, forex, and wealth management features. The startup has 1.5 million individual customers and over 6,000 corporates.
On the other hand, Goalwise has more than 60,000 users with Rs 850 crore assets under advice (AUA), the statement by Niyo said. The startup primarily has salaried millennials as customers living in Tier 1 cities with a median income of Rs 10 lakh. “With our combined resources, we will now be able to accelerate our roadmap for advanced features and inclusion of many more financial products,” said Swapnil Bhaskar, Co-founder and CEO, Goalwise.
Over $1.8 trillion, as per industry reports, has been stashed by Indian customers in bank deposits indicating that they avoid putting money in capital markets due to reasons such as poor financial literacy, lack of trust in the stock market, etc. “Niyo aims to empower them through its latest product offering that will offer higher rates of interest and encourage investment in mutual funds,” the company added.