Stack builds tailored investment strategies with globally diversified portfolios for everyday investors according to their risk appetite and goals.
Stack, an automated investing app for millennials, has raised $4.5 million in a Seed round led by global marquee investors such as Y Combinator, Harvard Management, Goodwater Capital, Soma Capital, Uncommon Capital and Earlsfield Capital. The Bengaluru-based FinTech has also recently launched its investment app on the Playstore. The app provides customised Investing solutions to the users.
Other investors that participated in the current round include Magic Fund, Side Door Ventures, Dragon Capital, Emles Ventures, Grand Park Ventures, Chandaria Capital, Cleo Capital, AngelList, West Quad, and Olive Tree Capital.
Well-known angel investors such as Paul Desmarais III of Portage Ventures, Tanuj Shori of Squareyards and Inmad Akhund of Mercury Bank also took part in Stack’s recent round.
Founded in 2021 by Smriti Tomar and Tushar Vyas along with founding team Vidit Varshney and Yashwarshan Puranik, Stack is bringing investing on autopilot experience for everyday retail investors. The startup would be using the fresh funds to expand the current team and enable more features to help users grow their money better.
On the funding, Earlsfield Capital’s Junior Partner Aakash Agrawal stated, “We believe that India with its young and millennial-led population is witnessing a rapid shift towards a financial assets focused investment strategy. With over 700 million active mobile internet users who are transacting on various platforms, there is a large market available for distribution of new-age financial products. Stack is building a mobile-first platform that makes goal-based investing a seamless and intuitive process for India’s many first-time investors. We are excited to partner with Smriti, Tushar and the team at Stack as they take India one step closer to financial inclusion.”
Stack builds tailored investment strategies with globally diversified portfolios for everyday investorsaccording to theirrisk appetite and goals.
Users just have to answer a few quick questions, and the app suggests a suitable investment portfolio with the help of a Nobel Prize winning algorithm and AI driven portfolio allocation strategy known as ‘Smart Stack Approach’
“Everyday investors are stuck with friends’ advice and archaic platform experiences without even realizing it. Stack sets out to finally give the best investing experience to everyone, with a transparent approach while educating our users on how to make their money work instead of being a black box.” stated Smriti Tomar, Cofounder and CEO at Stack.
To this Tushar Vyas, Cofounder and CBO said, “India needs a makeover to drive down the cost and minima of investing. Stack enables risk-free smart investments and aims to bring a revolution like Vanguard did in the US.”
Stack aims to make investing extremely easy and simple so that everyone can become an ‘expert investor’. Stack can build a custom plan for users, keeping their risk appetite and goals in mind, to make a fully balanced globally diversified portfolio which is automatically rebalanced and adjusted over the time.
“Currently all the services provided are free butwe plan to monetise our platform from advanced investing strategies and tools at a nominal cost, thereby democratising wealth advisory for all,” Tomar added.
The pandemic (Covid19) has accelerated financial awareness in India leading to all-time high growth in Demat accounts with over 10 million account additions in 2021 alone. Despite this growth, 75% of these accounts have little to no activities due to conservative investing attitude and lack of understanding of the equity markets. Equity market participation in India is still stagnated at 3.7%. Compared to this, China is at 12.7% and the US at 56%. Stack aims to increase participation of Indians into equity markets by using smart automation to make investing simple and easy for everyone.
Source: Business World