Cred to buy expense managing platform Happay for $180 mn
NEW DELHI: Fintech firm Cred on Wednesday said it will acquire business expense management platform Happay in a cash and stock deal, valuing Happay at about $180 million.
The deal, which is expected to be completed in the next few weeks, will see Happay operate as a separate entity.
“The acquisition is expected to be a cash and stock deal potentially valuing Happay at about $180 million. While Happay will operate as a separate entity, the team will work closely with Cred leadership to leverage its ecosystem, build distribution, expand the product offering and drive scale,” a statement said.
It added that Happay’s 230member team will get all the benefits extended to Cred team members, including its ESOP programme.
Bengaluru-based Happay offers a business expense, payments and travel management platform serving over 6,000 businesses.
It manages work-related expenses for over one million users globally with about $1 billion in annual spends.
Some of its key customers include Tata group, PwC, Maruti, OYO, Byju’s and Udaan.
“Turning the pain of credit card management into a delight has enabled Cred to grow rapidly over the past three years. 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,” Cred founder Kunal Shah said.
He added that Happay’s product strength, customer experience, and vision aligns with Cred’s to reward responsible financial behaviour and the company is excited to partner Happay in its journey towards leading the category.
“We’ve invested in building a category-defining product at Happay with thousands of customers who love the experience. The next phase of our growth will come from building scale, brand, and distribution,” Happay co-founder and CEO Anshul Rai said.
He added: “The Cred team’s experience in this regard has been unparalleled, and we’re excited to learn and grow together.”