In a significant development within India’s financial landscape, 360 One Wealth and Asset Management (formerly known as IIFL Wealth) has finalized the acquisition of ET Money, a prominent wealth tech platform previously owned by Times Internet. This acquisition, valued at approximately Rs 366 crore (approximately $44 million USD), marks a strategic maneuver aimed at solidifying 360 One WAM’s position as a premier wealth manager in the country.
360 One WAM has acquired ET Money through a structured deal that includes both cash and equity components. The transaction involves a cash payment of Rs 85.83 crore, supplemented by the issuance of 35,90,000 fully paid-up equity shares at an issue price of Rs 779.3 per share. This acquisition encompasses two key entities of ET Money: Banayantree Services Pvt Ltd and Moneygoals Solutions Pvt Ltd, which are integral to its operations in business advisory, product management, and financial product distribution.
The acquisition of ET Money aligns with 360 One WAM’s strategic goals to expand its footprint in the wealth management sector. ET Money is renowned for its robust mutual funds platform and extensive client base, managing assets worth Rs 28,000 crore. By integrating ET Money’s technological capabilities and client relationships, 360 One WAM aims to enhance its service offerings and strengthen its market position amidst increasing competition from other fintech players like Groww, Zerodha, and Paytm Money.
Financial and Operational Integration:
For the fiscal year ending March 2024, ET Money and its subsidiary ET Money Genius reported turnovers of Rs 2 crore and Rs 28.7 crore, respectively. ET Money boasts over 9 lakh transacting clients and actively manages assets under management (AUM) amounting to Rs 28,000 crore. Additionally, ET Money Genius serves more than 76,000 active paying advisory clients with an AUM of Rs 1,200 crore, highlighting its significant presence in the financial advisory space.
Regulatory Approval and Next Steps:
The acquisition is subject to regulatory approvals from key bodies such as the Securities and Exchange Board of India (SEBI), stock exchanges, and the Reserve Bank of India (RBI). Once these approvals are obtained, the integration process will commence, focusing on aligning operational synergies and leveraging technological efficiencies to deliver enhanced value to clients.
Impact on the Market:
360 One WAM’s acquisition of ET Money is expected to have a transformative impact on the Indian wealth management sector. It underscores a trend towards consolidation among financial services providers seeking to broaden their service offerings and strengthen their market share. The enhanced capabilities resulting from this acquisition are likely to benefit existing clients of both entities while attracting new investors seeking comprehensive wealth management solutions.
In conclusion, 360 One WAM’s acquisition of ET Money represents a strategic milestone in the evolution of India’s wealth management industry. This transaction not only underscores the company’s commitment to innovation and client-centricity but also sets the stage for future growth and expansion in a competitive market environment. As the integration process unfolds, stakeholders can anticipate witnessing synergies that will redefine the landscape of wealth management services in India.act of 360 One WAM’s acquisition of ET Money, offering readers a comprehensive understanding of this transformative transaction in India’s financial services sector.