Tiger Global is on an investing spree in India with online stock broking company Upstox being the latest beneficiary. The Mumbai-based firm has raised USD 25 million from the New York-based investor in its second round of institutional funding.
Upstox is a trading platform which counts Ratan Tata and Kalaari Capital as its backers. Recently, the company has forayed into mutual fund investments space.
“We have been profitable over the last two years, hence the new fund infusion will primarily be used for expanding our business, strengthening our product platform and building a strong team. Our target is to get the new generation of Indians to invest more actively in the stock markets; we are already seeing good traction in small cities and towns, we have to invest in attractive products to attract more customers from these areas,” Upstox cofounder Ravi Kumar told Economic Times.
In 2016, Upstox had raised USD 4 million.
The platform competes with the likes of Zerodha, Angel Broking and ShareKhan and currently service around 300,000 clients.
“The retail brokerage industry in India is highly under-penetrated and we are excited to partner with Ravi and the Upstox team as they work to make investing in India easier and more accessible. The market opportunity is large and growing and we believe Upstox is well-positioned to gain market share over time,” Scott Shleifer, partner, Tiger Global Management told ET. Tiger Global has invested in 20 Indian companies in the past one year.