Digital personal wealth management platform Scripbox has acquired the distribution business of Chennai MFD AK Narayan, AK Narayan Associates. The deal entails the transfer of both clients and employees.
The financial terms of the deal have not been disclosed.
Investors have been informed about the deal and the transitioning will be done over a period of three years, said Sanjiv Singhal, founder and COO of Scripbox.
A K Narayan, the CEO of A K Narayan Associates, will also join Scripbox but his position is yet to be decided.
"He will continue to be involved. There are multiple roles for someone of his seniority," Singhal said.
A K Narayan Associates has over 500 clients in India and abroad with assets under advisory of Rs 172 crore as on March 31, 2020.
Why did A K Narayan choose to sell the business?
With digitization becoming inevitable for businesses, Narayan saw the deal as the logical succession, according to Singhal. “There is a strong ethical component to both our businesses and Mr. Narayan felt that we could bring the right digital solution for his clients,” he said.
How Scripbox benefits from the deal?
Singhal said the deal is the next logical step in their growth plans.
Scripbox has been trying to strike the perfect balance between digital and human-assisted advisory model. The company which has already mastered the technology part to a certain extent is looking to strengthen the ‘human assistance’ part through acquisitions.
Last year, it had acquired Mitraz Financial, a 10-year-old SEBI registered investment advisor that provides personalized financial advisory services to HNIs and ultra HNIs.
"There are two types of customers — transactional ones and serious ones. Once a person accumulates a certain amount of wealth, he/she looks for more engagement and customisation. We are trying to evolve our platform to efficiently serve both," Singhal said.
