CRED, a credit card bill payments platform, on Wednesday announced that it is acquiring corporate expense management company Happay in a cash and stock deal worth $180 million.
The acquisition will allow CRED to enter the enterprise spending space. “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,” CRED said in a press note.
It added that Happay’s 230-member team will get all the benefits extended to Cred team members, including its ESOP programme.
Kunal Shah-led firm also said that all of Happay’s 230 employees will be eligible for benefits extended to Cred’s employees, including its ESOP (employee stock ownership plan) programme.
Shah, in the media statement, said that CRED has been able to grow rapidly in the last three years by solving the pain of credit card management. He added that now, professional expense management was a natural proposition for the company.
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.
Notably, Happay will be CRED’s second acquisition after HipBar — an alcohol delivery startup which it acquired in October.
Founded in 2012 by Varun Rathi and Anshul Rai, Happay is 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 USD 1 billion in annual spends. Some of its key customers include Tata group, PwC, Maruti, OYO, Byju’s and Udaan.