Mumbai-based online stock brokerage company RKSV Securities India Pvt. Ltd on Friday said it has raised $4 million in Series A funding from Kalaari Capital with participation of GVK Davix Technologies Pvt. Ltd, a contract research firm and others.
The company founded in 2012 by Ravi Kumar, Raghu Kumar and Shrinivas Viswanath is looking to use the funds for growth, improving technology and adding products.
“Only 1.5% of the population participates in the capital markets due to high brokerage costs, cumbersome trading software, and poor customer support. Without investing in the equity markets, the average Indian is actually eroding their hard earned savings, through inflation and taxes. We want to change that. Investing can be truly engaging and rewarding, and should not be prohibitively expensive to get started,” said Raghu Kumar in a statement.
RKSV provides users with online investing and trading solutions. It launched its mobile app Upstox, with an aim to simplify investing and trading experience for both professional traders and beginners. The pricing model is such that it allows free trading on equities and a nominal fee of Rs.20 pay-per-order for professional traders.
“We believe consumer participation in the India equity markets will expand significantly over the next decade. India’s youth population is likely to see equity markets as a viable alternative to fixed deposits, gold and real estate. RKSV’s mobile first brokerage model is well positioned to benefit from this shift,” said Vani Kola, managing director, Kalaari Capital.
The company already accounts for close to Rs.6,000 crore of daily traded turnover across the NSE, BSE Ltd and MCX.
This article was first published on Livemint.com