Digital wealth management firm Scripbox has acquired Bluechip Capital’s mutual fund distribution business to broaden its customer reach and improve its standing in the wealth management segment.
The move by Scripbox will give the company an opportunity to improve its distribution channel and add to its total assets under management through the inclusion of mutual fund clients of Bluechip Capital on its platform. This comes as part of the company’s overall plan to expand its operations in wealth management.
Scripbox was founded as a digital platform for investment services that include wealth management in the form of mutual funds, financial planning, portfolio management, and investment advisory services, among others. Scripbox has been trying to help individual investors gain access to investments via its digital platform.
There has been tremendous growth in the wealth management market in India, driven by high incomes, awareness, and capital market participation by individuals.
This follows a trend of increasing consolidation in the financial services industry.
Wealth management companies are currently on the hunt to increase their client pool and improve their distribution capabilities through acquisitions and strategic partnerships.
According to experts in the field, the mutual fund industry still has many avenues of opportunity owing to the low number of people investing in these funds and increased interest in building wealth over time. Digital channels play a vital role in allowing individuals across the nation access to investments.
For Scripbox, the merger offers opportunities to reach a broader clientele while also solidifying ties with clients through offering a wide array of financial products. The company has been steadily developing into a wealth management firm from just offering mutual fund investments.
The deal is also indicative of how important scale is in this industry, which requires a trusted brand, robust technology, and a strong distribution network.
With more investors turning to market-linked investment products as opposed to savings tools, India’s asset management and wealth advisory businesses are expected to grow significantly.
