InCred Capital Acquires Wealth Management Startup Orowealth

Fintech startup InCred Capital has acquired wealthtech startup Orowealth in an all-cash deal for the launch of its retail-focused wealthtech platform ‘InCred Money’. However, the startup didn’t disclose the funding amount.

Orowealth has assets under management (AUM) of over INR 1,100 Cr. InCred Capital said it will onboard Orowealth’s entire team. As part of the deal, Orowealth’s cofounder Vijay Kuppa will head InCred Money as the CEO going forward.

InCred Money will offer B2B2C services to customers. 

InCred Capital already has a presence in the ultra/high net worth wealthtech management segment through the ‘InCred Wealth’ brand. The startup claimed that InCred Wealth has crossed the milestone of INR 15,000 Cr in AUM within 2 years.

The development comes almost two months after InCred’s asset management arm announced INR 500 Cr maiden credit fund, InCred Credit Opportunities Fund I. The fund also has a greenshoe option of INR 500 Cr. 

Founded in 2015 by Nitin Agrawal, Swati Aggarwal, Vijay Kuppa and Yogesh Powar, Orowealth is an online investment platform that helps investors diversify their investment portfolio. 

It offers various alternate investment products such as bonds, fractional real estate, green investing, P2P loans, and invoice discounting, among others. It also provides detailed reports, portfolio insights, and other personalised offerings to investors.

“There is a growing demand for non-traditional investment assets from mass affluent and retail investors due to rising income levels and greater awareness. We are addressing this massive demand by putting together a suite of carefully curated products and solutions,” said Kuppa. 

InCred, set up in 2016 by ex-Deutsche banker Bhupinder Singh, is a lendingtech startup that offers loans to retail companies and MSMEs. It provides varied types of loans such as personal, home, education, SME and two-wheeler,among others.

According to an Inc42 report, the number of mergers and acquisitions (M&As) grew 10% year-on-year (YoY) to 240 in 2022 amid the funding winter. With the funding winter expected to last at least for the first two quarters of 2023, the number of M&As are expected to see a further increase this year.

 Meanwhile, the country’s lendingtech sector, which is expected to grow at a CAGR of 32% to breach the $616 Bn mark by 2025, is likely to see some regulatory bottlenecks hindering its operations in 2023. This is expected to provide a boost to startups working in allied sectors such as lending SaaS, risk management and underwriting.