Bengaluru-based online mutual fund investment platform Scripbox has raised ₹147 crores ($21 million) in series C round of funding from Trusted Insight, a networking platform for institutional investors and fund managers. Existing investors Omidyar Network and Accel Partners also participated in the funding round.
Data research platform paper.vc finds the investment round to be strategic. Earlier in June 2016, Scripbox raised an undisclosed amount of funding in series B round from Omidyar Network and some angel investors. Prior to that Accel Partners invested ₹17.5 crores ($2.5 million) in Scripbox in Series A round in 2015.
Founded by Sanjiv Singhal in 2012, the fintech platform curates various mutual fund schemes and weeds out the confusion created by many options. The startup has executed more than 2 million transactions and had managed more than ₹900 crores in investments from users. The startup has penetrated into 1,250 cities across India.
Scripbox claims that 70 per cent of retail investors is first time buyers of mutual fund schemes. The startup uses a proprietary algorithm to suggest the best mutual fund investment scheme packed with bank-grade security and easy tracking of the portfolio.
There are several players in the space. Startups like Piggyy, Groww and Fisdom pose as competitors to Scripbox. While big players like Paytm Money and ET Money have been in the market for quite some time. Last year in 2018, Groww raised ₹11.2 crores ($1.6 million) in pre-series A round of funding. Fisdom also raised ₹26.6 crores ($3.8 million) in 2017 from Quona Capital and Sama Capital.
Fintech market has been on the heat for past 2-3 years. However, the sector is emerging and the penetration of financial services like an online mutual fund is comparatively low. This makes various firms and startups jump into the section as it promises to grow at a wonderful rate ahead. The mutual fund industry is expected to grow from 2 crore investors to 5 crore investors in the next five years.