Tuesday, May 10, 2022

CASHe Announces Its Foray Into WealthTech Space With The Acquisition of Sqrrl


CASHe, India’s preferred AI-driven credit-led wellness platform today announced its foray into the wealth management space with the acquisition of Sqrrl, a Gurgaon-based WealthTech platform, in an all-cash deal (Subject to regulatory approvals). The strategic buy-out broadens CASHe’s millennial-focused credit-led product and services suite to now cover their investment and wealth management needs as well. The acquisition further accelerates the company’s strategic vision 3.0 of building a full-stack wellness platform for this cohort of the population. Over 20 million users of CASHe can now access a digitally enabled, mobile-first, byte-sized investing platform that will help them kick-start their investment journey with as little as Rs. 100.

The acquisition comes close on the heels of CASHe raising Rs. 140 crores in equity funding from its Singapore-based holding company TSLC Pte Ltd. The deal will be primarily funded from its surplus capital, reflecting the company’s strong financial position. Over the past year, CASHe has constantly introduced new product offerings in line with increasing consumer demands and has now entered the highly lucrative millennial and GenZ-focused WealthTech space.  

This consolidation brings unique synergies between Sqrrl, India’s first vernacular app in the WealthTech space serving over 5 lakh users across 600 cities, and CASHe, one of India’s fastest growing credit-led wellness platform with over 20 million users and adding a staggering one million new users every month. The strategic acquisition will effectively capture the combinational synergies of both platforms to create a seamlessly embedded industry-first LendTech, InvestTech, and InsureTech platform offering the full gamut of financial services for the digitally native Indians. Post the acquisition, the co-founders of Sqrrl will continue to lead CASHe’s wealth management business.

Mr. V. Raman Kumar, Founder Chairman, CASHe said, “The acquisition of Sqrrl is an important milestone for CASHe’s vision 3.0 roadmap as it sets the stage for the next phase of our growth through our foray into the WealthTech space. By integrating CASHe’s millennial-focused credit-led services with the digital-first wealth and investment management offerings of Sqrrl, we aim to seamlessly fulfill the diverse credit and investment needs of the new-age Indian by offering multi-product access and next-gen financial wellness solutions. With CASHe’s product offerings accessible to over 20 million users in the country and growing rapidly, this acquisition will aid in extending our reach to the next billion young Indians by offering them an all-new byte-sized investing ecosystem covering a much larger geographical footprint.”

Mr. Joginder Rana, Vice Chairman and Managing Director, CASHe said, “This acquisition marks our entry into the WealthTech space. With its byte-sized investment management capability and its vernacular presence, the combined platforms of CASHe and Sqrrl will meet the growing expectations and preferences of its customers not only in major cities but in tier 2 and 3 towns spearheading the rise of a new and robust Young India. Sqrrl has all the ingredients we need to reach customers that are still unaddressed and underserved in India. We will continue to look at strategic investments or acquisitions that can add value to our business that will create a truly inclusive financial wellness ecosystem”.

“Backed by a strong management team with deep industry expertise, Sqrrl has done exceptionally well in a short period to build a holistic, digital-first wealth management platform that advises its users to make smart small ticket investment decisions, without the hassle of tedious paperwork. The combined teams of CASHe and Sqrrl will work to grow the customer base at an exponential pace” he further stated.

Mr. Samant Sikka, Co-founder, Sqrrl said, “We are delighted to join CASHe – a company that brings enormous experience and passion in empowering the GenZ and Millennials to achieve their financial ambitions. We have grown the wealth management business into being a partner of choice for our discerning customers. This move will help the business scale up further by offering Sqrrl’s investment products to CASHe’s massive customer base with just a few clicks. We will continue to focus on our strategy centred around stable and sustainable growth in the wealth management business with the largest footprint of customers and thereby creating a true one-of-a-kind company.”

Established in 2017, Sqrrl is a mobile-first wealth management platform focused on millennials and Gen Zs providing them with unique offerings to invest and grow their earnings without the hassle of tedious paperwork through its multiple savings and investment products. Sqrrl is an investment platform that uses powerful data analytics and automated processes to deliver the best possible investment experience at the lowest possible cost. It provides five different investment options namely, Mutual Fund investing (SIP / Lumpsum), Goal-based investment, Axe Tax (Tax saving plans) Sqrrl Away (round-up investing or micro-investing), and Fixed Deposit. Sqrrl has pioneered round-up investing in India through their Sqrrl Away offering.  The platform serves over 5 lakh users across 20,000 pin codes from more than 600 cities, with over 55% of its users coming from beyond the top 30 cities in India. It allows users to access over 5,000 mutual fund schemes across 28 mutual fund houses. Besides its various B2C offerings, it has also built successful partnerships in the B2B2C space with credible alliances with ICICI Bank, Sakal Money, DCB Bank, and many more underway.

About CASHe

Headquartered in Mumbai, CASHe is an AI-based, mobile-only credit-led financial wellness platform focused on making financial inclusion possible by serving the underserved digital customers in India. The company is driven by its laser focus to unlock opportunities for the millennial and Gen Z population by making financial inclusion and accessibility possible using its cutting-edge algorithms and AI and ML-based credit decisioning model called the Social Loan Quotient (SLQ). Since launch, CASHe has registered over 20 million app downloads on the app store and has disbursed loans of over Rs 4,000 crores to over 4 lakh customers.  CASHe has witnessed stellar growth in FY 21-22 registering record disbursements, new user acquisitions, top-line growth, profitability, and a diversified product offering.  Over the past year, the company has constantly introduced new product offerings in line with increasing consumer demands and has successfully transformed itself into a full-fledged financial services platform that offers its customers credit, investment, insurance, and EMI shopping.

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