New-age financial services startup Cosmea Financial Holdings (CFH) on Tuesday announced its joint venture with OroWealth, as part of its plan to set up and launch a digital-first mutual fund.
The new joint venture company -- Torus Oro AMC -- will spearhead the foray of CFH into the AMC business.
As per the agreement, Cosmea, promoted by ex-Reliance Capital CEO Sam Ghosh, will hold a 74 per cent stake in Torus Oro AMC (Asset Management Company), while the balance of 26 per cent will be held by OroWealth and its founders, according to a statement.
Torus Oro AMC has applied for an asset management company license with capital markets regulator SEBI and expects to launch its operations within this year, subject to applicable approvals.
The company meets all statutory norms of experience, net worth, and profitability to apply for the license, the statement noted.
The digital-first AMC aims to have Rs 10,000 crore in assets under management (AUM) over 3 years, with a primary focus on passive, smart beta, international and retirement products.
Nitin Agrawal, one of the founding members of the wealth tech startup OroWealth, will be the CEO of Torus Oro AMC.
"The mutual fund industry is going through a tectonic shift driven by technology and innovation. We are excited about building a digital AMC with a technology-first approach across the three verticals -- distribution, fund management and operations," CEO designate Agarwal said.
"We will empower distribution partners and customers with sophisticated portfolio analytics tools, use cutting-edge data analysis techniques to augment fund research and optimize fund operations with automation," he added.
CFH will bring necessary capital and its distribution strength, both digital and physical, while the OroWealth management team will bring in technology and current distribution tie ups -- which includes banks, telecom etc -- to the venture.