Financial services group, Karvy through its wealth management arm Karvy Private Wealth, has acquired iTrust Financial Advisors, a Gurgaon based financial service startup for an undisclosed amount, VCCircle.com reports.
In a company press release (a copy of it here), Karvy Private Wealth CEO Hrishikesh Parandekar has said that they’ll use iTrust as an online channel, and enter the the Tax Preparation and Online Filings business. Remember that this acquisition has taken place just a few months short of the personal tax filing season. Similarly, they’ll push Karvy’s proprietary products and stock broking platform to iTrust’s client base.
iTrust uses more of an online+offline, hybrid model to provide financial products and management solutions, with comparison of mutual funds, loans, insurance policies and other financial products. It enables both online and offline purchase of the products. Its revenue comes from the fee associated with financial plans and in form of commissions paid from financial companies whose products are sold by the firm.
It also runs a branded tax preparation and filing business for salaried employees. It has partnered with websites, newspapers and TV companies such as Zee Business, Economic Times and Indian Express to provide financial advice.
iTrust was founded in 2006 by Harvard Business School alumni Dhruv Agarwala and Kartik Varma. The company had raised money in 2007 from angel investors like Ashish Dhawan of ChrysCapital and professors of Harvard Business school.
In December 2010, another personal finance portal RupeeTalk was acquired by financial services distribution company NetAmbit, which planned to use it as a web front for fulfillment of leads.
(more about iTrust on Harvard Business school’s Alumni Bulletin)