Credit card bill payment platform Cred to acquire Happay in cash and stock transaction, valuing the expense management company at around $ 180 million, the company said in a statement on Wednesday. .
Happay will operate as a separate entity with Cred’s leadership team working closely with them to leverage Cred’s ecosystem, expand product offerings and scale up operations, Cred added. In addition, all 230 employees of Happay will be eligible for the benefits offered to employees of Cred, including its ESOP (employee shareholding plan) program.
The acquisition of Happay is expected to create synergies between the credit card bill payment platform offered by Cred and the Happay platform which offers business expenses, travel bookings and payments.
“The strength of the product, the customer experience and the vision of Happy align with our intention at Cred to reward responsible financial behavior and we are delighted to accompany them on their journey to the top of the category,” said Kunal. Shah, founder of Cred.
Happay, an expense, payment and business travel management platform, claims to serve more than 6,000 businesses. The company claims to manage the work-related expenses of more than a million users worldwide, who spend nearly $ 1 billion annually. Happay also claims to be the only unified platform that automates the expense management workflow and leverages contactless and paperless methods that it predicts people will follow in the post-pandemic world.
“The next phase of our growth will come from scale, brand and distribution development. The experience of the CRED team in this regard is unparalleled, and we are excited to learn and grow together, ”said Anshul Rai, Co-Founder, CEO of Happay.
Happay was founded in 2012 by alumni of the Indian Institute of Technology-Kharagpur – Rai and Varun Rathiwas. Initially, it was a peer-to-peer mobile wallet for consumers, before switching to an expense management platform for businesses. Using Happay’s prepaid business expense cards and its cloud platform, employees can add and update business expenses on the go, eliminating the need for money and paper.
The company’s business expense management solutions include petty cash management, expense report automation, prepaid cards for business expenses, travel and expense management, flexible benefits, cards international travel cards and a digital marketing spend card.
Using a single centralized platform, a business gets real-time visibility and control over expenses, while accountants can reconcile expense reports and integrate them into accounting software.
In 2017, the company raised $ 10 million (Rs 65.13 crore) in a Series B funding round led by existing investor Sequoia Capital, VCircle had reported. Happay had raised $ 7.2 million in July 2015 from Sequoia Capital and Prime Venture Partners, according to data available with VCCEdge, the data and research platform of VCircle.
In April 2015, he had also raised $ 500,000 (Rs 3.1 crore) from Prime Venture Partners.
While Sequoia Capital owns around 32.4% of Happay’s capital, founders Varun Rathi and Anshul Rai hold around 30% of the capital, Prime Venture Partners owns around 26% of the company’s capital and the rest is owned by Axiom Capital, Times Internet Ltd and others. .
The acquisition of Happay comes at a time when Cred is looking beyond its core platform which allows users to make credit card payments. In October, the company acquired alcohol delivery startup HipBar Pvt. Ltd, with the aim of making inroads into the wallet payments industry. HipBar has a Prepaid Payment Instrument (PPI) license granted by the Reserve Bank of India (RBI), which allows businesses to operate payment systems such as digital wallets, prepaid transport cards, vouchers, etc.
Although details of the deal are not known, according to the Foreign Ministry website, the founder of Cred Shah and his brother Rohan Shah Naresh joined the HipBar board as directors on the 12th. October. Only one of HipBar’s former founders, Prasanna Natarajan, is still a director.
Cred is also said to be in talks to acquire two other startups – Dineout, the Times Internet-owned restaurant and reservation services platform, and Wint Wealth – an alternative investment platform that allows users to invest in financial products. Happay, by the way, was incubated by startup accelerator TLabs, which was created within Times Internet in 2011.