Upstox to take on Groww, Zerodha with Tiger Global’s $200 mn push
Upstox – With a new round of funding of $200 million led by New York-based investment firm Tiger Global, online brokerage start-up Upstox has flown into the unicorn club with a valuation of $3.5 billion. According to sources, the investment group has bought a 30% share in Upstox as a result of this.
According to BusinessToday.in, Tiger Global led the majority of the $200 million investment round at Upstox, contrary to earlier claims that the brokerage firm had raised $25 million.
This is one of Tiger Global’s largest bets in the online brokerage industry, which has been dominated by bootstrapped unicorns Zerodha and Groww, among other notable investments in India’s start-up ecosystem in recent months.
Upstox, on the other hand, has outperformed Zerodha (which is valued at around $2 billion) and Groww (which is valued at $3 billion). Lalit Keshre, CEO of Groww, previously told BusinessToday. Because the stock market investment industry in India is vastly underpenetrated in comparison to industrialised nations such as the United States, the entry of new competitors will not slow the pace of any company’s growth.
With the introduction of mobile first platforms that offer seamless investing options and knowledge, the COVID-19 pandemic has provided more tailwinds to the segment, with the number of retail investors seeing a significant increase.
Upstox, which is also funded by Ratan Tata, raised $25 million in 2019 at an undisclosed valuation and claims that user onboarding increased by more than thrice in FY21, from around 2 million customers in January 2021 to over 7 million presently.
Upstox was the first online brokerage to offer unlimited trading plans at a fixed price to encourage India’s millennial population to invest in the stock markets. It was founded by Ravi Kumar, Kavitha Subramanian, and Shrini Viswanath with the goal of disrupting the nascent online brokerage sector in India.
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