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Anil Arora resigns from Envestnet board the same day as his new company gets backing at an eye-popping valuation

The ex-CEO of Yodlee left his executive role at the Chicago outsourcer a while back but TIFIN is on an upswing

Friday, October 29, 2021 – 11:57 PM by Brooke Southall
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Anil Arora leaves Envestnet at a high valuation, $4.55 billion.

Anil Arora resigned as a director of Envestnet, effective Oct. 28, on the same day as his new company, TIFIN, had an exceptionally good news day.

"Anil’s knowledge of, and experience with, financial technology companies was a valuable resource to our board," said Bill Crager, Envestnet CEO in a release. 

Arora, the former CEO of Yodlee -- both before and after Envestnet bought it -- gave his notice to the Chicago technology and product supermarket virtually as his new Boulder, Colo., company announced it had raised $45 million at a staggering $447 million valuation.

Bill Crager
Bill Crager: Anil Arora was a 'valuable resource.' 

He also leaves Envestnet at a high valuation, $4.55 billion as of the market's close Friday with shares at $83.50, just a shade off their all-time high.

TIFIN's major holding was 55ip, which it sold to JPMorgan in a quick-flip this past April that may have padded its account.

TIFIN's best-known holding now is Totum, a Riskalyze competitor. TIFIN is also assimilating seven other software firms to create an integrated kitchen sink. See: Fresh off buying Totum and selling 55ip, TIFIN loads up on capital -- and brand credibility -- with three new big-name investors

Arora is a senior partner and board member of TIFIN and he was very valuable to Envestnet during his time there, according to former fellow Envestnet board member, Chip Roame, managing principal of Tiburon Strategic Advisors.

"I think Anil added tons of value to the ENV board," he says. "He was the board member that was the most data focused (core to ENV’s future) and the board member with the best sense of the broader FinTech market beyond just WealthTech (a market where Yodlee had deeper roots than ENV)…"

Growth software

Prior to its sale, Chicago-based Envestnet was Totum's largest backer. It funded the company in 2015, soon after the Totum was founded, through its Yodlee incubator to the tune of $3.5 million in a "non-equity-based investment."

Chip Roame
Chip Roame: 'Anil added tons of value to the ENV board.'

A mix of broker-dealer reps, asset managers and RIA advisors already administer a cumulative $500 billion using TIFIN-owned software, which is "designed to grow, not run or manage an advisor's business," Tifin CEO Nair told RIABiz in April, via email.

Yodlee has been both the sizzle and the fizzle at Envestnet over the years since being acquired in 2015. The bad news is that it's mostly operated in the red as a standalone unit.

The good news is that it became viewed as a possible M&A gold nugget after its compatitor, Plaid, was accorded a $5-billion valuation by VISA. See: Visa gambles $5.3 billion that Plaid will pay Big Data dividends while big-footing Envestnet-Yodlee and beating back fintech banking competitors

Arora served as president and CEO of Yodlee, Inc. from February 2000 and became vice chairman and CEO of Envestnet | Yodlee in November 2015 when Yodlee was acquired by Envestnet.

Arora gave up his executive role effective March 1, 2019 but remained a director of Envestnet.


Related Moves

Envestnet just named an ESG head to meld 'wellness,' 'The Intelligent Financial Life' and 'sustainable investing' into a single nirvana -- that starts outside of the product realm

Ron Ransom earned CEO Bill Crager's trust as chief business development officer and now will define how Envestnet conducts itself as a global citizen and vendor of wellness.

July 27, 2022 – 2:27 AM

Envestnet and Edmond Walters end odd couple 'Apprise' relationship with buyout, but leave open the door to jointly pursue RIA-to-entrepreneur dashboard... later

The MoneyGuidePro owner and eMoney founder execute clean break with Apprise IP rebranded as 'Wealth Studio.' Walters off to the races with a startup and vague promise to collaborate later.

April 6, 2021 – 12:50 AM

Envestnet turns to former FIS executive -- and replaces a CTO -- to help shape up the firm's disparate offerings into a unified whole around the concept of 'wellness'

The Chicago outsourcer gets Donna Peeples to harmonize products and marketing to move beyond the 'TAMP' label as Orion contends for market share with Brinker added.

November 10, 2020 – 2:45 AM

Envestnet nabs Dani Fava to cross-pollinate semi-autonomous units and reap 'financial wellness' as the end product

The Chicago outsourcer has a massive, partially disconnected arsenal of products that CEO Bill Crager is rationalizing into 'wellness' with yet another new unit.

July 23, 2020 – 1:42 AM

See more related moves

Mentioned in this article:

Envestnet Inc
TAMP
Top Executive: Jud Bergman




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