Cred to buy expense management firm Happay; deal valued at $180 mn

CIOReviewIndia | Thursday, 02 December 2021, 11:38 IST

sCredit card bill payments platform Cred is going to procure Happay in a cash and stock deal. Cred is set to make its second acquisition since its inception. The Kunal Shah-led startup has agreed to acquire Happay, a corporate expense management platform, valuing it at $180 million. Cred is a corporate expense management platform, in a cash-and-stock deal to add to its suite of fintech offerings.

The expense management platform serves more than 6,000 businesses, managing work-related expenses for over one million users globally with about $1 billion in annual spends. The software stack and in-house payments will help Cred members manage professional expenses on their credit cards.

In October, Cred took the possession of alcohol delivery startup HipBar.

The deal says Happay's valuation at nearly $180 million and the company, founded by Anshul Rai, will continue to operate independently but work closely with Cred’s leadership to leverage its ecosystem that is build to distribute and expand product offerings. The Happay team will win all the benefits extended to Cred employees, including its ESOPs programme.

Happay’s product strength, customer experience, and vision align with our intent at Cred to reward responsible financial behaviour and we’re excited to partner them in their journey towards leading the category,” Shah said in the statement.

After the ownership, Happay will operate as a separate entity and  CRED’s leadership team will work closely with Happay to leverage CRED’s ecosystem, expand product offerings and power up operations, the company said along With the addition of the expense management platform, CRED said it will extend its offerings to the enterprise spends space this will help them to deal and synergise CRED's credit card bill payments platform with  Happay’s platform that offers business expenses, travel bookings and payments, the firm added.

“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,” Shah said.

Happay currently has more than 6,000 clients, including Dominos, PriceWaterhouseCoopers, and Oyo, and processes transactions worth over $3 billion annually.

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