Cred, a credit card bill payments platform, will buy Happay in a cash and stock deal, the company said in a statement on Wednesday, valuing the expense management firm at approximately $180 million.
Post the acquisition, Happay will operate as a separate entity, and Cred’s leadership team will work closely with it to leverage Cred’s ecosystem, expand product offerings and scale up operations, the company said. Cred also said that all of Happay’s 230 employees will be eligible for benefits extended to Cred’s employees, including its ESOP (employee stock ownership plan) programme.
Happay’s acquisition will bring synergies between the credit card bill payments platform offered by Cred and Happay’s platform that offers business expenses, travel bookings and payments, the company said.
“Happay’s product strength, customer experience, and vision align with our intent at Cred to reward responsible financial behaviour and we’re excited to partner them in their journey towards leading the category,” said Kunal Shah, founder, Cred.
Happay, a business expense, payments and travel management platform, claims to be serving more than 6,000 businesses. The company claims to be managing work-related expenses of over 1 million users globally who spend nearly $1 billion annually. Happay also claims to be the only unified platform that automates the spend management workflow and is betting on contactless, and paperless methods that it foresees people following in the post-pandemic world.
“The next phase of our growth will come from building scale, brand, and distribution. The CRED team’s experience in this regard is unparalleled, and we’re excited to learn and grow together,” said Anshul Rai, co-founder, chief executive officer, Happay.
