Finnew Solutions, the parent entity of fintech startup Niyo, has acquired Alphafront Finserv-run mutual funds investment platform Goalwise in a cash-and-stock deal.
Niyo co-founders Vinay Bagri and Virender Bisht have picked up majority stakes in the startup, the company said in a statement.
Financial terms of the deal were not disclosed.
Goalwise founding members will join Niyo’s leadership team and run a personal finance and investment wing called Niyo Wealth as an independent vertical within the company.
Along with its mutual fund product, Niyo Wealth plans to launch international and domestic stocks, robo advisory and auto invest products in next few months, the statement added.
Goalwise was founded in April 2015 by IIT Kanpur alumni Swapnil Bhaskar, Ankur Choudhary, and Savitri Bobde. It’s a zero commission mutual fund investment platform, and does not charge account opening or maintenance fees either.
The company primarily caters to salaried millennials from tier 1 cities, with a median income of Rs 10 lakh. It offers a goal-based investing solution that oversees all aspects of investment, including mutual fund selection, portfolio rebalancing and target tracking.
Goalwise claims to have over 60,000 users with Rs 850 crore assets under advice.
In May 2016, the startup raised $1 million from a group of high net worth individuals (HNIs).
“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,” Niyo’s Bagri said.
Founded in 2015, Niyo primarily offers two financial products – NiYO Bharat Payroll solutions, which provides a salary account for blue collar workers, and Niyo Global Card, which provides banking services for travellers. The payroll card is a zero balance account with facilities services such as instant account opening, salary advance and free accidental death insurance, while the global card enables international transactions.
Niyo said it currently serves around 1.5 million customers and has an enterprise and SME base of over 6,000.
The Bengaluru based company has raised about $49 million so far from investors including Tencent, Social+Capital, JS Capital, Horizons Ventures and Prime Venture Partners. Chinese internet giant Tencent Holdings joined its last fundraise, when the company raised $35 million in a Series B round of funding.