360 One Enters the Wealth Tech Space with Acquisition of ET Money
In a significant development in India’s fintech landscape, 360 One WAM (Wealth and Asset Management), the country’s largest wealth manager focused on ultra-high-net-worth individuals, has agreed to acquire popular mutual fund investment app ET Money for approximately $44 million. The acquisition marks 360 One’s entry into the fast-growing wealth tech space for the masses and is expected to complement its existing offerings for high-net-worth and ultra-high-net-worth clients.
ET Money: A Popular Choice Among Retail Investors
ET Money, which was earlier part of Times Internet’s portfolio, boasts over 900,000 transacting clients and tracks assets under management of approximately $8.3 billion. The platform has been a popular choice for retail investors, with monthly mutual fund net flows of around $89.9 million. ET Money is likely to generate the bulk of its revenues from its fee-paying advisory proposition, which has 76,000 active clients with Rs12 billion of AUM (implying ~2% revenue yields).
Little Overlap Between ET Money and 360 One Client Base
According to Kotak analysts, there is little overlap between ET Money’s business/client base and that of 360 One. Hence, it is likely to operate as a separate vertical. 360 One expects the combined business to benefit from its in-house product suite, broking service, and lending needs.
A Strategic Move by 360 One
The acquisition will allow the combined entity to leverage their product suites, domain expertise, and advisory solutions to tap into a larger user base. This move is strategic for 360 One, as it expands its offerings beyond high-net-worth clients to cater to a broader segment of investors.
Times Internet’s Second Exit in Recent Weeks
This acquisition marks the second exit from Times Internet’s portfolio in recent weeks. Amazon had reached an agreement to buy assets of on-demand streaming service MX Player for less than $100 million last week, TechCrunch first reported. ET Money was acquired by Times Internet in 2014 and rebranded from Moneysights.
About 360 One
360 One WAM (Wealth and Asset Management) is India’s largest wealth manager focused on ultra-high-net-worth individuals. The company provides a range of investment products and services to its clients, including discretionary portfolio management, advisory services, and investment banking solutions.
About ET Money
ET Money is a popular mutual fund investment app in India that offers a range of features to investors, including investment tracking, portfolio rebalancing, and research reports. The platform has been instrumental in increasing awareness about mutual funds among retail investors in India.
Impact on the Fintech Landscape in India
The acquisition of ET Money by 360 One is expected to have a significant impact on the fintech landscape in India. With this deal, 360 One enters the wealth tech space for the masses and expands its offerings beyond high-net-worth clients. This move is likely to create new opportunities for growth and expansion in the Indian fintech market.
A New Chapter for ET Money
With 360 One’s acquisition, ET Money is expected to leverage its product suites, domain expertise, and advisory solutions to tap into a larger user base. The platform is likely to continue operating as a separate vertical, catering to its existing client base and offering new services to investors.
Conclusion
The acquisition of ET Money by 360 One marks a significant development in India’s fintech landscape. With this deal, 360 One enters the wealth tech space for the masses and expands its offerings beyond high-net-worth clients. The move is likely to create new opportunities for growth and expansion in the Indian fintech market.
Related Developments
- Amazon had reached an agreement to buy assets of on-demand streaming service MX Player for less than $100 million last week, TechCrunch first reported.
- ET Money was acquired by Times Internet in 2014 and rebranded from Moneysights.
360 One
ET Money
