Indian fintech CRED is in talks to back Bengaluru-headquartered startup Smallcase, three sources familiar with the matter said, as the Tiger Global and Alpha Wave Global-backed company seeks to expand its wealth offerings to clients.
CRED’s proposed investment in Smallcase values the startup at $300 million to $400 million, a source said. The size of the investment is unclear and the sources requested anonymity as deliberations are ongoing, early stage and private.
CRED declined to comment. A Smallcase founder did not immediately respond to a request for comment.
Smallcase operates a platform to help a new generation of investors participate in Indian equity markets.
The startup serves over 3 million users and connects them to an in-house team of licensed professionals who offer over 100 stock and exchange-traded fund portfolios as well as access to independent investment managers, brokers and brokers. wealth management platforms.
Smallcase, which counts Amazon, Sequoia Capital India, Blume Ventures and Arkam Ventures among its existing investors, works with a number of stock brokerage services including Kite and Upstox.
An investment in Smallcase will enable CRED to expand its wealth management offering. The startup, founded by Kunal Shah, offers three flagship offers. It rewards users who pay their credit card bill on time to help them improve their financial behavior. It also helps them pay and track their rent, education, and several other bills.
Its third offering is wealth management. Last year, CRED launched a peer-to-peer lending service called Mint, which offers its clients anti-inflationary investment opportunities.
If the deal materializes, it will be the latest in a series of CRED investments over the past several quarters. The startup, valued at $4 billion in its last funding round, last year backed business-to-business debt startup CredAvenue and acquired Happay, which operates an enterprise expense management platform.