PhonePe, the digital payments platform backed by Walmart, is planning on acquiring two wealth management corporations, WealthDesk and OpenQ for $75Mn in aggregate. The company will procure WealthDesk for $50Mn and OpenQ for $25Mn.
The Chief Executive and the co-founder of PhonePe, Sameer Nigam, said that he expects financial services to account for 40-50% of the company’s revenue. The company was also about to enter the merchant lending business in the first half of 2022.
WealthDesk will remain an independent platform after the acquisition and will be led by its founder Ujjwal Jain. However, Mr. Jain and the entire team of WealthDesk will be working as a part of the PhonePe group.
“WealthDesk currently has over 50 partners across categories already working with them and we expect their platform to scale further by integrating with more partners and to become a gold standard for investment technology,” said a PhonePe spokesperson.
WealthDesk aims at creating an internet scale investment technology ecosystem by building the United Wealth Interface (UWI) for Asset and Wealth Management ecosystem on top of broking/transactional platforms in India.
The interactiveness offered by WealthDesk’s platform will allow all ecosystem stakeholders such as brokers, AMCs, Investment Advisors, Research firms, etc, to interact and engage with each other, and push investment products innovation.
Further, OpenQ is a smart beta wealth management platform that designs investment strategies and optimal portfolio construction advice. “Post acquisition, OpenQ will be instrumental in creating the Wealth Ecosystem for the PhonePe Group,” the spokesperson added. The deal is subject to necessary regulatory approvals.