360 One Wealth and Asset Management, formerly IIFL Wealth, has entered into a definitive agreement to acquire wealth tech platform ET Money for a total sale consideration of Rs 365.8 crore, the company said in a stock exchange filing on Wednesday.
360 One will pay Rs 85.8 crore in cash to Times Internet, while the remaining part of the transaction will be through issuing 3.5 million stocks of the Mumbai-based wealth management company at a price of Rs 779.93.
Times Internet, the parent of ET Money, will secure a stake in the wealth management firm and will remain invested in the space, the statement said. Times Internet is part of The Times of India Group, which publishes this newspaper.
“360 One and ET Money will now be able to leverage the product suite, domain understanding of the business, portfolio advisory solutions, brokerage services and credit solutions to a large user base. The acquisition is expected to result in a strong and faster path of monetisation for ET Money across both users as well as product offerings.” said Karan Bhagat, founder and chief executive officer, 360 One WAM.
ET Money will become a step down subsidiary of 360 One, which mostly caters to ultra high net worth individuals. The acquisition will help 360 One get access to the larger wealth management market, a sector which ET Money caters to. The TIL-owned wealth tech platform has more than 9 lakh transacting users with more than 1 lakh revenue generating users.
Satyan Gajwani, vice chairman, Times Internet, said, “We are incredibly proud of ET Money’s achievements and we are sure it will reach further heights in partnership with 360 One WAM.”
The total assets invested on ET Money’s platform is nearly Rs 28,000 crore out of which Rs 25,000 crore is in mutual funds, the company said in a statement. The platform tracks an overall assets under mananagement of around Rs. 70,000 crore, it said.
The app clocked gross sales per month of over Rs 1,200 crore with Rs 450 crore monthly invested through systematic investment plans. ET Money competes with the likes of Groww, Zerodha’s Coin, Paytm Money, others.
Its investment advisory service, ET Money Genius, has more than 76,000 active paying advisory clients with an AUM of Rs. 1,200 crores, the company further added.
“We have a shared vision with 360 One WAM to align our businesses deeply with our client’s investment outcomes, creating trusted relationships. We are excited about leveraging 360 One WAM’s product platform, designed for the wealthy, to democratise access to premium wealth products and solutions for the aspiring Indian,” said Mukesh Kalra, chief executive officer, ET Money.
360 One is the investment and financial advisor to more than 7,200 high net worth Individuals and ultra HNIs with aggregate assets of around Rs 4.67 lakh crore under management. The company closed FY24 with operational revenue at Rs 1,846 crore up 18% from Rs 1,565 crore a year ago. The wealth management firm reported a net profit of Rs 802 crore up compared to Rs 668 crore a year ago.
Source: Economic Times