360 One WAM Acquires ET Money for $44 Million, Expands into Wealth Tech for the Masses

360 One WAM Acquires ET Money for $44 Million, Expands into Wealth Tech for the Masses


360 One WAM, India's largest wealth manager for ultra-high-net-worth individuals, has acquired the mutual fund investment app ET Money for approximately $44 million, marking its entry into the wealth tech space for the masses.This acquisition is expected to complement 360 One’s existing high-net-worth services by leveraging ET Money’s substantial retail investor base and robust revenue model.

ET Money, with over 900,000 transacting clients and $8.3 billion in assets under management, will operate as a separate vertical within 360 One.The combined entity aims to enhance its product offerings and advisory solutions, benefiting from minimal client overlap and creating synergies between 360 One’s bespoke financial services and ET Money’s digital investment platform.

In a strategic move poised to reshape India's wealth management landscape, 360 One WAM, the nation’s largest wealth manager focused on ultra-high-net-worth individuals, has announced the acquisition of the popular Indian mutual fund investment app, ET Money, for approximately $44 million. The deal, disclosed in a stock exchange filing on Wednesday evening, signifies 360 One’s ambitious foray into the fast-growing wealth tech sector catering to the masses.

Formerly known as IIFL Wealth Management, 360 One WAM is renowned for its bespoke financial solutions tailored for high-net-worth and ultra-high-net-worth clients. This acquisition is expected to complement and enhance 360 One’s existing offerings, providing a comprehensive suite of services that span the entire wealth spectrum.

ET Money, a prominent player in the digital investment space, boasts a robust client base of over 900,000 transacting users and tracks assets under management (AUM) totaling approximately $8.3 billion. The platform has become a go-to choice for retail investors, with monthly mutual fund net flows averaging around $89.9 million.

This acquisition marks the second notable transaction involving a Times Internet portfolio company in recent weeks. Amazon recently agreed to acquire assets of the on-demand streaming service MX Player for under $100 million, as reported by TechCrunch.

By integrating ET Money into its operations, 360 One aims to leverage their combined product suites, domain expertise, and advisory solutions to tap into a broader user base. The company anticipates that ET Money will continue to operate as a separate vertical, given the minimal overlap in client bases. This strategic alignment is expected to drive significant synergies, enhancing the combined entity’s ability to deliver superior financial services.

ET Money generates a substantial portion of its revenue through its fee-paying advisory services, boasting 76,000 active clients with Rs 12 billion in AUM, translating to approximately 2% revenue yields. This robust revenue model aligns well with 360 One’s comprehensive in-house product suite, broking service, and lending capabilities.

Analysts at Kotak have expressed optimism about the acquisition, noting that the combined business is likely to benefit from the synergistic integration of 360 One’s high-net-worth services with ET Money’s retail-focused platform.

Times Internet initially acquired Moneysights in 2014 for an undisclosed amount, later rebranding it to ET Money. The platform has since grown to become a leading player in the wealth tech space, offering a user-friendly interface and a wide array of investment options for retail investors.

With this acquisition, 360 One WAM is set to expand its footprint in the wealth management industry, providing tailored solutions that cater to a diverse clientele. The move underscores 360 One’s commitment to innovation and growth, positioning it as a formidable player in both the high-net-worth and retail investment segments.

Stay tuned for more updates as 360 One and ET Money embark on this exciting journey to redefine wealth management in India. 

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June 13, 2024

Kalpana Maurya