Nuvama Wealth backed by PAG, Acquires Wealthtech Startup Pickright

• ByStartupStory     |    March 21, 2023

According to reports, Nuvama Wealth, a wealth management company previously known as Edelweiss Personal, has acquired a 74% equity stake in Pickright Technologies, a wealthtech startup. The purchase will provide an exit opportunity for Pickright’s current investors, including Mumbai Angels Network, JITO Angel Network, and 100x.VC, while the founders will retain the remaining shares. 

Nuvama Wealth, a wealth management firm previously known as Edelweiss Personal, has acquired a 74% stake in Pickright Technologies, a wealthtech startup, according to reports. The acquisition will allow Nuvama to leverage Pickright’s user interface and user experience capabilities. Despite the acquisition, Pickright will maintain its independence. The move comes two years after JITO Angel Network led a $200K seed funding round for Pickright.

Pickright Technologies, a Bengaluru-based wealthtech startup founded in 2019 by Archana Elapavuluri and Namandeep Bhatia, connects investors with advisors across various asset classes. Pickright also provides customized investment portfolios, called “Investpacks,” to assist investors in achieving their financial objectives and managing risk. Investpacks offer options for investing in ETFs, mutual funds, stocks, gold, and fixed deposits.

 

Rahul Jain, the President and Head of Nuvama, stated that the wealth management sector is primarily concerned with transaction-based investment services, leaving a significant need for financial advice among affluent clients. This realization prompted Nuvama to acquire a majority stake in Pickright Technologies, which provides intelligent advisory services. 

Pickright Technologies is a SEBI-registered investment advisor that has provided services to over 100,000 users and managed assets worth INR 50 crores, according to the company. Pickright claims to have a staff of approximately 17 individuals. The startup has the support of several angel investors, including Vikrant Yadav, Gaurav Gupta, Vikram Pandya, Madhavi Bollipalli, Vivek Srivatsav, and Srinivas Paanem.

In India, Pickright Technologies competes with other wealthtech platforms such as Scripbox, ETMoney, Groww, Wealthy, and IndMoney. According to a RedSeer report, the Indian wealthtech sector was worth $20 billion in the financial year 2020 and is expected to triple to approximately $63 billion by the financial year 2025. Furthermore, domestic fintech startups raised over $24 billion from investors between 2014 and Q4 2022, as per the Inc42 fintech report. The fintech market in India is projected to exceed $2.1 trillion by 2030, with a compound annual growth rate of 18% between 2022 and 2030. 

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