360 One Acquires ET Money in Major India Acquisition

India's largest wealth manager for ultra-high-net-worth individuals, 360 One WAM, has made a strategic move to acquire the popular Indian mutual fund investment app, ET Money, for approximately $44 million. This acquisition marks 360 One's foray into the fast-growing wealth tech space catering to a wider audience in India.

The deal was disclosed in a stock exchange filing by 360 One, previously known as IIFL Wealth Management, on Wednesday evening.

The acquisition is expected to complement 360 One's existing offerings for high-net-worth and ultra-high-net-worth clients.

ET Money: A Popular Choice for Indian Retail Investors

ET Money boasts an impressive user base of over 900,000 transacting clients, managing assets under management (AUM) of approximately $8.3 billion. The platform has garnered significant popularity among retail investors in India, attracting monthly mutual fund net flows of around $89.9 million.

This acquisition is expected to provide 360 One with access to a vast and engaged user base, further solidifying its position in India's wealth management landscape.

Expanding Reach and Capabilities in India's Wealth Tech Space

The acquisition of ET Money allows 360 One to leverage its product suites, domain expertise, and advisory solutions to tap into a significantly larger user base in India. The combined entity aims to offer a comprehensive suite of wealth management solutions to individuals across different income levels.

ET Money's focus on mutual fund investments complements 360 One's existing offerings in wealth management, enabling a wider range of services for clients.

Strategic Acquisition for 360 One and Times Internet

The acquisition of ET Money is the second notable deal involving a startup from Times Internet's portfolio in recent weeks. Last week, Amazon acquired assets of on-demand streaming service MX Player for under $100 million.

These strategic moves highlight the growing interest in Indian tech startups, particularly those operating in the digital media and financial technology sectors.

The acquisition of ET Money underscores 360 One's commitment to expanding its presence in India's burgeoning wealth tech market.

Potential Synergies and Market Impact in India

Analysts from Kotak believe that the acquisition will be beneficial for both companies, allowing them to leverage their strengths and expand their reach in India's wealth management market. ET Money's revenue generation through fee-paying advisory services, with 76,000 active clients and Rs12 billion of AUM, is seen as a valuable addition to 360 One's portfolio.

The combined entity is expected to benefit from 360 One's in-house product suite, broking services, and lending capabilities.

The acquisition will likely lead to increased competition in India's wealth tech space, prompting other players to adapt and innovate to meet the evolving needs of investors.

ET Money's Journey from Moneysights to Acquisition

ET Money, originally known as Moneysights, was acquired by Times Internet in 2014 for an undisclosed amount. The platform was rebranded as ET Money and has since established itself as a leading player in India's mutual fund investment app market.