Multipl users can plan for their kid’s expenses three to 12 months in advance and earn investment returns on their savings
To ensure that parents can make smarter choices and save more while spending for their kids, especially for recurring expenses, Multipl has launched the Parenting category on its app.
Becoming a parent comes with a lot of responsibilities with managing finances being one of the primary concerns. When a baby is born, parents spend between Rs 10000 to Rs 30000 month-on-month, meeting the needs of baby products like diapers, crib, clothes, skincare, stroller, car seats and more. But most parents do not plan for these expenses and rely on their bank savings to spend for them.
Similarly, financial planning for children remains is still restricted to conventional financial instruments such as bank savings, fixed deposits and long-term insurance plans. These plans and instruments often do not benchmark the rising education and miscellaneous costs and could end up being inadequate the meet expenses when the child grows up.
In fact, the concept of financial planning for anything except college funds is practically non-existent. With annual school fees rising to up to Rs 2 lakh in tier-I cities, most parents do not effectively plan for this recurrent annual expense.
Multipl’s parenting category aims to solve this problem. Its users, called Multiplers, can plan for their kid’s expenses 3-12 months in advance, and earn investment returns on their savings.
The fintech has partnered with kids-first brands like FirstCry, Hamleys, Vendatu, StayQrious, as well as Decathalon, Myntra, Flipkart, Nike, Puma, etc, from where parents usually purchase for their kids. These brands also provide 3 per cent to 25 per cent additional savings in the form of co-investments.
“The new category on Multipl is launched with the purpose of helping parents become more prudent while spending for their children. It ensures that young parents do not fall into a debt trap and are able to build positive savings behavior. We will be adding many more relevant and exciting brands to this category to make it exciting for the parents," said Paddy Raghavan, chief executive officer (CEO) and co-founder of Multipl.
To further strengthen this category, Multipl has done a strategic partnership with iMumz, a platform that empowers pregnant mothers to deliver healthy babies through a positive lifestyle. The goal of this partnership is to help mothers (and parents) plan for a change in their lifestyle once their baby is born.
“Multipl and iMumz sync perfectly as we both have a clear purpose of helping young parents in all aspects of parenthood. While iMumz provides the necessary lifestyle guidance to unlock the true potential of the newly born, Multipl enables parents financially to achieve the same thing. We’re very excited about this partnership,” observed iMumz CEO and founder Ravi Teja Akondi.
A Save Now, Buy Later platform, Bengaluru-based Multipl was founded by Paddy Raghavan, Jags Raghavan and Vikas Jain in 2020. It is supported by leading investors, including Blume Ventures, GrowX Ventures, IIFL and Kotak Securities.
With more than 250,000 installs, the fintech encourages deliberate consumption and avoids impulsive purchases. Its internal investment research team uses its proprietary investment advisory framework, to generate a custom risk model for each user before allocating their funds.