Upstox is an Indian online discount stockbroker, offering an easy-to-use, fast-trading platform for traders in the Indian stock market. It is a brand of RKSV Securities. Upstox has raised a fresh round of investment led by US investment giant Tiger Global, which is expected to boost its valuation to between $3 and 3.5 billion, according to sources familiar with the development.
A Upstox account combines a trading account and a Demat account. The trading account offers access to stock exchanges like NSE, BSE and MCX, while the Demat account holds securities like stocks, mutual funds, etc., in digital form. It is a member of SEBI, BSE, NSE, MCX and CDSL. The company is regulated by stockbroker regulations and audited regularly by exchanges.
Upstox is currently in discussion with the New York-based investment firm to lead a $150-200 million funding round, as per people familiar with the matter. Tiger Global owns a 31% stake in Upstox. Upstox can be a unicorn if the funding round is successful, a privately held company valued at $1 billion or more, and will even be valued significantly higher than in the previous round.
The Mumbai-based investing platform may fetch a valuation of more than $3 billion, according to sources privy to the deal. A spokesperson of Upstox declined to comment on the situation and an email sent to Tiger Global did not elicit a response. Bengaluru-based Groww, another Tiger Global-backed startup, saw its valuation soar three times in six months to $3 billion after raising $251 million from Iconiq Growth in October. An $83 million funding led by Tiger Global in April took Groww to the ever-growing unicorn club of India this year.
As well as Tiger Global, Ashish Kashyap, co-founder of travel site Goibibo, also runs INDmoney, an online wealth management company. “It is an indication of Tiger’s bullishness on the sector that Tiger is making a significant investment in Upstox,” an individual familiar with the matter said. The fund has taken multiple bets in a particular sector across competing firms.
Earlier this year, Upstox raised $25 million in a Series B funding round led by Tiger Global. In early 2016, it raised $4 million from Kalaari Capital and others. As of January 20, 2021, the company had over 2 million customers. It intends to cross 10 million by March 2022. Upstox also provides online stock market investment services, advisory services and mutual fund investments. Upstox and Groww are seeing user growth, thanks largely to young retail investors who are coming online for their first investments and savings.
The company is betting big on Robo-advisory and gamification of investing models, and is attracting investor interest for both, said one of the people who knew of its plans. Thippesha Dyamappa was appointed chief technology officer this year – after Upstox considered a SPAC (special purpose acquisition company) listing in the US.
