Credit card rewards fintech Cred has acquired Spenny, a Y Combinator-backed microsaving and investment app, for an undisclised amount.
Shah and team members from Spenny, which had shut down their app, would join Cred's product team.
Rathin Shah and Gaurav Arora founded the Bengaluru-based investment app in 2019 to round off users' extra change from online transactions and automatically invest it in digital gold and mutual funds. Its business concept is comparable to that of fellow Y Combinator-backed app Gullak and Tiger Global-backed Jar app.
Spenny stated in March 2023 that it would be discontinuing its Android and iOS apps and advised clients to withdraw or shift cash to apps such as Groww. Meanwhile, it has partnered with Lendbox, a peer-to-peer lending and investment platform.
Cred, which offers users the ability to manage and pay their credit card and other bills, as well as access to D2C brands and loans, was previously partnered with LiquiLoans to launch Cred Mint, a service that allows the fintech's customers to lend to one another at an interest rate of up to 9 per cent per year.
Cred had invested approximately USD 10 million in its partner, marking its first venture into P2P lending. It has also invested in CredAvenue, a lender, and HapPay, an expense management tool.
To broaden its loan operations, the fintech recently acquired Hyderabad-based SaaS player CreditVidya, which offers lending-as-a-service.