scripbox: Fintech platform Scripbox makes strategic investment in Pune-based wealth managers

Online wealth management platform Scripbox has made a strategic investment in Pune-based wealth advisory platform Wealth Managers.

Scripbox declined to comment on the size of the deal.

This should strengthen its geographical presence, expand its customer base and offer digital solutions to Wealth Managers’ customers.

Over the past six months, Scripbox has actively focused on inorganic partnerships to grow its customer base, strengthen its team, and grow its network of financial advisors.

It has entered into five to six partnerships with offline wealth management advisory firms in the past six months, founder and chief executive Atul Shinghal told ET.

Scripbox has completed 10 acquisitions and partnerships with independent wealth advisory firms over the past two years, including the latest combination with Wealth Managers.

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“In this industry, brand and trust matter. Clients of independent financial advisors who partner with us benefit from an enhanced portfolio building experience, while Scripbox has access to a mature customer base,” Shinghal said.

“We focus on clients with a net worth between Rs 50 lakh and Rs 5 crore, which offline wealth advisors manage today. We are careful to be careful in terms of capital, in these acquisitions and partnerships,” he added.

In January,
Scripbox had raised $21 million in debt and equity financing, led by Accel Partners.

“We’re a cash-flow-positive company, so a lot of the capital raised is to do these partnerships and acquisitions,” Shinghal said.

In December 2020,
Scripbox had acquired Mitraz Financial, an investment adviser registered with the Securities and Exchange Board of India (SEBI).

Founded in 2012, Scripbox follows a hybrid model of digital and financial planners to help users manage their finances.

Since inception, the company has grown its assets under management to over Rs 12,000 crore and has 100,000 clients.

It has executed over 8 million trades on its platform.

“We have always been impressed with the technology initiatives and process-driven advancements made by Scripbox. Partnering with them gives us the opportunity to build long-term investments, based on a rational and responsible approach, for a much wider cross-section of investors,” said Bharat Phatak, Founder and Director of Wealth Managers.

Scripbox plans to forge two to three more partnerships with wealth advisory firms this year and is also looking to bring insurance advice to life for clients on its platform, Shinghal added.

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Dolores W. Simon