Sequoia India leads $8m funding in online investment platform Smallcase

Photo: Reuters

Online investment platform Smallcase Technologies, backed by brokerage platform Zerodha, has raised $8 million in a Series A round of funding led by Sequoia India, according to a statement.

Existing investors including Blume Ventures, Straddle Capital, Beenext Pte Ltd, WEH Ventures and DSP Adiko also participated in the round.

The company said it will use the funds to build a platform that will help retail brokerages offer its products to their clients.

Smallcase is a kind of thematic investing platform, which allows an investor to invest in a portfolio of stocks based on a theme such as GST Opportunity. The Bengaluru-based company was established by three IIT-Kharagpur graduates — Vasanth Kamath, Anugrah Shrivastava, and Rohan Gupta — in 2015.

“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,” said co-founder and chief executive Kamath. “Since the underlying securities are held in the investor’s demat account, they have complete control & transparency into their investments,” he added.

The startup claims that more than 2.5 lakh investors have already made transactions worth over Rs 2,000 crore on its platform. Its services are currently available on brokerages including HDFC Securities, Zerodha, AxisDirect, Edelweiss and 5Paisa.

Sequoia also led a $25-million round for insurance portal Turtlemint last month. The venture capital firm had earlier backed lending and payments firms such as BankBazaar, Capital Float and MobiKwik. Last year, the firm also invested in Cred, founded by FreeCharge founder Kunal Shah, which offers rewards to credit card users on bill payments, and online finance platform Drip Capital.

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