Wealthtech platform Fintso buys WealthMagic in part-equity, part-cash deal

Fintso, the B2B2C wealthtech platform, has acquired WealthMagic – a SaaS provider in the wealth management space. The specific financials of the deal remain undisclosed. Fintso said that it is a part-equity and part-cash deal. The acquisition by Fintso is aimed at extending its platform to reach the next billion investors in India by equipping and providing multi-product solutions to the distributors who are key to this wave of financial inclusion.

The combined entity will now cater to over 1.5 million retail investors with investments to the tune of Rs 1.4 trillion ($20 billion) of assets, which is being managed by over 3,400 financial product distributors.  

WealthMagic is one of the largest SaaS providers to mutual fund distributors, transforming their back and front office operations. WealthMagic was launched in 2016 by Datacomp Web Technologies, a well-known player in the insurance and financial services automation sector, providing solutions for insurance companies, AMCs, brokers, and agents for the past 30 years.

This acquisition will help Fintso augment its presence among India’s growing investor base. Fintso’s digital-first financial products suite will enable the WealthMagic users to become Independent Financial Products Providers (IFPPs) with multi-product, multi-manufacturer distribution capabilities.

“The combined offering of Fintso and WealthMagic brings the next generation of solutions, with multi-product access, digital execution, and advisory thereby addressing the end-to-end needs of investors. The impact of this acquisition will be extremely long lasting as it begins with strengthening the financial entrepreneurs and democratising wealth management through technology,” said, Rajan Pathak, co-founder and MD, Fintso.

Currently, of the 100 million households in India, 90% live in Tier-1 and beyond. This makes outreach and distribution beyond the Top 30 cities extremely inefficient and under-penetrated.

George Mitra, co-founder and CEO of Fintso, further added, “It allows us to offer multi-product execution and advisory services to the users of the WealthMagic SaaS platform, which encompasses a large network of investors. With over 44 million individual data points, we are now equipped for the next step – machine learning and data analytics on investment behavior. This enables us to help distributors provide insightful and personalised micro-advisory to investors.”

“We are delighted to see WealthMagic synergising with Fintso. We believe our shared vision to provide a holistic wealth management solution will revitalize the ecosystem and help accelerate the growth of new investors from

tier-1 cities and beyond,” said Ajay Arora, co-founder and CEO of Datacomp.

Explaining the transaction, George Mitra added,“This consolidation will set the stage for the next phase of our growth – to widen our footprint and target the 100 million households that will start investing over the next decade. Fintso’s cloud-native platform will reinvent and strengthen the ‘bridge-of-trust’ that the independent financial product distributors represent to the investors they serve.”

The transaction comes on the back of a further fundraise by Fintso of around $3 million from its existing base of angel investors including Brijesh Agarwal (Co-founder & Director of IndiaMart), Dilip Khandelwal (Global CIO of Deutsche Bank), Kanwaljit Singh (Fireside Ventures), Nikhil Vora (Sixth Sense) and some of the large family office funds in India.