Fintso, a B2BC wealth-tech platform, has announced the acquisition of WealthMagic -- a SaaS provider in the wealth management space.
Fintso stated that it is a part-equity and part-cash deal. However, the specific details of the deal remain undisclosed.
The acquisition by Fintso is aimed towards extending its platform to reach the next billion investors in India.
The combined entity will now cater to over 15 lakh retail investors.
WealthMagic is one of the largest SaaS providers to mutual fund distributors, transforming their back and front office operations. It was launched in 2016 by Datacomp Web Technologies, a player in the insurance and financial services automation sector, providing solutions for insurance companies, AMCs, brokers, and agents for the past 30 years.
This acquisition is going to help Fintso augment its presence among India’s growing investor base. Fintso’s digital-first financial products suite will enable WealthMagic users to become Independent Financial Products Providers (IFPPs) with multi-product, multi-manufacturer distribution capabilities. The cloud-native platform enables them to expand their reach while benefitting from AI-based advisory.
George Mitra, co-founder and CEO of Fintso, said, “We are extremely excited at this development. It allows us to offer multi-product execution and advisory services to the users of the WealthMagic SaaS platform, which encompasses a large network of investors. With over 44 million individual data points, we are now equipped for the next step – machine learning and data analytics on investment behavior. This enables us to help distributors provide insightful and personalized micro-advisory to investors.”
Explaining the transaction, Mitra added: “This consolidation will set the stage for the next phase of our growth – to widen our footprint and target the 100 million households that will start investing over the next decade. Fintso’s cloud-native platform will reinvent and strengthen the ‘bridge-of-trust’ that the independent financial product distributors represent to the investors they serve.”
The transaction comes after a fundraise by Fintso of $3 million from its existing base of angel investors including Brijesh Agarwal (Co-founder & Director of IndiaMart), Dilip Khandelwal (Global CIO of Deutsche Bank), Kanwaljit Singh (Fireside Ventures), Nikhil Vora (Sixth Sense) and some of the large family office funds in India.