CRED takes over the expense management company Happy

Kunal Shah’s CRED appears to be aggressively taking over companies – a strategy it has backed away from in the first two years since its inception. CRED is about to take over the expense management company Happay.

The two companies have held talks for the past few months and the terms of the deal have been sealed, said two people familiar with the details of the deal. “The deal is a mix of cash and stocks that Happay will be worth at over $ 150 million,” said one of the people who asked for anonymity.

CRED has the takeover talks with. confirmed Trickypedia… Happay is the second acquisition by CRED after HipBar – an alcohol delivery start-up acquired in October.

CRED is supposed to be too in talks Acquires Times Internet’s own Dineout- and Rainmatter-backed debt investment platform WintWealth. These talks are early on, however, and the Bengaluru-based company has yet to confirm them.

Shah’s other entity, Newtap Technologies allegedly acquired Fintech company Parfait.

Happay offers companies an expense management system to manage travel and tax benefits for their employees. The company offers specialized solutions for large companies with several branches and area logistics companies.

The decade-old company also enables large companies to issue prepaid and credit cards and manages the expenses for 800,000 to 900,000 employees who work at 6,000 companies, including 100 large corporations.

“Employees usually use credit cards to make business expenses, and the Happay acquisition will put them in the funnel of CRED,” said the second person, also asking for anonymity.

To date, Happay has raised $ 22-25 million in multiple funding rounds. According to TechCircle estimates, it was estimated at around $ 60 million during its extended Series B round in 2019. If CRED acquires Happay in the above range, it will be a lucrative exit for its stakeholders.

While Happay is not yet required to file its FY21 financial statements, the company’s operating income increased 49% to Rs 37.55 billion in FY20 from Rs 25.12 billion in FY19. During FY20 losses increased 95% to 49.20 billion rupees.

This year has been an incredible year for CRED when it comes to the amount of money raised. The company raised $ 466 million in 2021 and will join Razorpay and Meesho, who are also in talks, to make new rounds with valuations in excess of $ 5 billion. Trickypedia would have exclusively reported on the new round of CRED, which would value the three-year-old company at over $ 5.5 billion.

Leave a Comment