Mumbai: Kunal Shah‘s Cred has agreed to acquire Happay, a corporate expense management platform, in a cash-and-stock deal to add to its suite of fintech offerings.

While financial details of the proposed Cred-Happay deal weren’t disclosed, the transaction pegs Happay’s valuation at nearly $180 million, according to a statement released Wednesday.

Last month, ET reported that Newtap Technologies Pvt. Ltd., a company floated by Shah personally, had

acquired Parfait Finance & Investment, a non-bank lender. Cred has applied to the Reserve Bank of India for a payments aggregator licence, in line with the company’s strategy of enabling ecommerce on its platform. Separately, Cred
launched Cred Mint in August to enable users to on-lend to other Cred customers following a tie-up with LiquiLoans—an RBI-registered peer-to-peer non-banking lender.

Happay, founded by Anshul Rai and Varun Rathi, will continue to operate independently but work closely with Cred’s leadership to leverage its ecosystem, build distribution and expand product offerings. The Happay team of 230 will get all the benefits extended to Cred employees, including its ESOPs programme.

Currently, Happay serves more than 6,000 businesses, managing work-related expenses for over 1 million users globally with about $1 billion in annual spends. Its software stack and in-house payments will help Cred members manage professional expenses on their credit cards.


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“With professional expenses forming a significant portion of credit card spends, bringing professional expense management into the Cred ecosystem is a natural extension of our proposition,” Shah said.

The next phase of Happay’s growth will come from building scale, brand and distribution, Rai said. “The Cred team’s experience in this regard is unparalleled, and we’re excited to learn and grow together.”

Cred had in October raised $251 million in new funding after which its valuation jumped to $4 billion, compared with $2.2 billion in April. Existing investors Tiger Global and Falcon Edge co-led the fundraising, that saw participation of Marshall Wace and Steadfast Venture Capital, DST Global, Insight Partners.

Though it started as a credit card repayment player in 2018, Cred has entered ecommerce, and lending too. Its current lending product had a loan book of Rs 2,000 crore in August with less than 1% non-performing assets. It offers loans to approved users through a partnership with IDFC First Bank.

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