Bengaluru-based online equity investment firm Smallcase has raised ₹56 crores ($8 million) in series A funding round from Sequoia India, Blume Ventures, Beenext Ventures, DSP Adiko, WEH Ventures, and Straddle Capital. There were reports published in November 2018 that Sequoia is looking forward to investing in Smallcase.
Founded by Vasanth Kamath, Anugrah Shrivastava and Rohan Gupta, the fintech startup lets retail investors choose from a number of a themed portfolio of stocks and exchange-traded funds in a proportion that creates the highest return on investment. Unlike most traditional platforms, the stocks are available in the demat account held by the user which enables full ownership and transparency.
“We are building Smallcases as a new investment instrument class that helps you take portfolio exposure to stocks & ETFs while having no expense ratio, making them cost-effective. Since the underlying securities are held in the investor’s demat account, they have complete control & transparency into their investments,” said co-founder and chief executive Kamath.
Apart from that, the startup also provides various tools to research firms for the creation of ‘smallcases’ and building platforms that enable ETF-based transactions. The four-year-old startup has partnered with AxisDirect, Zerodha, 5paisa, Edelweiss and HDFC Securities to provide investment services to its retail customers.
As of current metrics, the startup boasts of 2.5 lakh retail investors who made transactions of over ₹2,000 crores on the platform since its launch in 2015. Smallcase earlier raised a seed round of ₹3.15 crores ($450,000) in October 2015 led by Blume Ventures. In July 2017, the company raised another ₹11.41 crores ($1.63 million) from Blume and others. Smallcase also raised ₹39.76 crores ($5.68 million) from SCI investments in July 2018.