Upstox
Key Highlights:
  • The co-founder of Upstox Shrini Viswanath said, currently, the Digital stockbroking platform is also witnessing the shift, as more than 80% of its customers are from Tier 2, and 3 cities.
  • Fintech startups in India raised around $1.77 billion in January-March 2022 compared with $3.2 billion in December 2021, a decline of almost 45%.
  • Tiger Global raised $25 Mn at a valuation of over $3 Bn for the startup last year, launching it into the unicorn club.

As high-speed internet penetration, smartphone availability, and digitisation spread across the country, more and more people from small towns and rural areas are investing in mutual funds and stock markets. The co-founder of Upstox Shrini Viswanath said, currently, the Digital stockbroking platform is also witnessing the shift, as more than 80% of its customers are from Tier 2, and 3 cities.

At a Fintech Summit 2022, Viswanath shared the evolution of the platform’s customer profiles over the last five years. Further, he said, Upstox customers in 2010-11 came from more than 90% of the country’s top 7 cities, which is much different from now, when the majority of new customers come from small towns. And More than 71% of Upstox’s customers have never opened an account with a brokerage or conducted KYC.

In addition to the rise in smartphone adoption and internet access, customers have also been conducting independent research in order to make better decisions.

Talking about the startup’s business philosophy Viswanath said, “We have a straightforward goal: to get access to a huge group of people, make it easier for them to onboard, manage their wealth, and invest in the stock market, so they can subsequently grow their wealth and that is our mission for 5 years”.

Investors at Upstox are also encouraged to become more financially literate. Since millennial investors are experiencing an economic downturn for the first time, it has become critical to helping them cope with this period of difficulty, Viswanath noted.

While the global economy has slowed, he also acknowledged that investors’ sentiments have changed and equity volumes have decreased. Viswanath also pointed out that the rise in commodity prices has hurt Indian investors more than any other macroeconomic indicator.

Regarding the mindset of retail investors, Viswanath said, “It won’t be a complete pause, but rather a waiting-and-watch situation”.

As a result of the Russia-Ukraine war and the Covid-19 pandemic, the price of various commodities, like oil and metals, has increased. Globally, this has resulted in a rise in inflation, tightening monetary policies, and fears of a recession.

In terms of fundraising, the market downturn has also impacted fintech startups. As per a report, Fintech startups in India raised around $1.77 billion in January-March 2022 compared with $3.2 billion in December 2021, a decline of almost 45%.

Investors can invest in stock market investments, advisory services, and mutual funds through Upstox.In the beginning, Shrini Viswanath, Raghu Kumar, and Ravi Kumar founded RKSV Securities as a proprietary trading firm. In 2012, the company expanded into retail brokerage with the launch of Upstox.

Tiger Global raised $25 Mn at a valuation of over $3 Bn for the startup last year, launching it into the unicorn club.

For More Startup and Funding-related News Visit Alphafirm.

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