Online wealth management company Scripbox has strategically invested in Wealth Managers, a wealth advisory company based in Pune.
Regarding the value of the deal, Scripbox declined to comment.
This is expected to boost its geographical presence, expand its customer base, and provide digital solutions to Wealth Managers’ clientele.
Scripbox has actively focused on inorganic partnerships over the last six months to expand its clientele, bolster its staff, and expand its network of financial advisors.
According to founder and CEO Atul Shinghal, it has formed agreements with five to six offline wealth advisory firms in the past six months.
Over the past two years, Scripbox has completed 10 acquisitions and partnerships with independent wealth advisory firms, most recently with Wealth Managers.
“In this business, brand and trust matters. The customers of independent financial advisors partnering with us get an upgraded experience in terms of portfolio creation, while Scripbox gets access to a mature customer base,” Shinghal said.
“We are focused on customers who are in the Rs 50 lakh to Rs 5 crore net-worth range which offline wealth advisors today handle. We are making sure we are prudent in terms of capital, in these acquisitions and partnerships,” he added.
In January, Scripbox had raised $21 million in debt and equity funding, led by Accel Partners.
“We are a cash-flow positive business, so the capital raised is largely for doing these partnerships and acquisitions,” said Shinghal.
In December 2020, Scripbox acquired Mitraz Financial, an investment advisor licenced with the Securities and Exchange Board of India (SEBI).
To assist consumers in managing their finances, Scripbox, founded in 2012, adopts a hybrid methodology that combines financial planners and digital tools.
Since its inception, the organisation has added 100,000 customers and increased its assets under management to over Rs 12,000 crore.
On its platform, more than 8 million transactions have been completed.
“We were always impressed by the technology initiatives and process-driven progress made by Scripbox. Joining hands with them gives us an opportunity to build long-term investments, based on a rational and responsible approach, for a much larger cross-section of investors,” said Bharat Phatak, founder and director of Wealth Managers.
Scripbox is planning to forge two to three additional partnerships with wealth advisory firms this year and is also looking to make insurance advisory live for customers on its platform, Shinghal added.