Mumbai-headquartered IIFL Wealth Management has invested in CerraCap Ventures' namesake venture capital fund dedicated to early stage technology investments.
Based in the US, CerraCap Ventures focuses on cyber security, artificial intelligence and digital health. Start-ups like Nirveda Cognition, Dathena, Fifth Demension, Bandbaajaa, Deep Instinct, Fortscale, Miqasa, Swych, Viome, AgShift and Bluedot are among the CerraCap Ventures Fund II's portfolio.
For IIFL Wealth, which manages about $24 billion in high-net-worth assets in India, this investment helps the company connect to more start-ups in the technology sector.
‘We like the sharp focus of the CerraCap team on emerging technology areas. Our relationship with CerraCap Ventures will give us access to investment opportunities in the best technology businesses on a global front,’ said Karan Bhagat, MD and CEO of IIFL Wealth.
This investment comes after IIFL Wealth had spread its wings to launch the IIFL-ONE platform that institutionalises a range of investment options for Indian clients under a transparent ‘all-in-fee’ structure.
IIFL-ONE, according to the firm, brings down the overall cost paid by the client in the long run, as well as eliminates the incentive to churn the portfolio completely bringing alignment with client’s requirement.
The Indian wealth manager has also been on an acquisition spree, having snapped up Chennai-based Wealth Advisors last October, and a Bengaluru-based fintech company, Altiore Advisors, just a month before.
Wealth Advisors is one of the largest wealth management firms in South India with asset under advice of approximately INR 11,000 crore ($1.58 billion). The acquisition gave IIFL Wealth access to new client segments, a steady annuity-based revenue, and a cutting-edge technology platform.
Altiore Capital, meanwhile, has created a niche for itself in the financial services space with a proprietary software that integrates and runs deep analytics on the entire net worth of clients. Tracking INR 5000 crore ($720.7 million) of assets, it works mainly with wealth managers, banks, insurance companies and mutual funds.