Upstox, a financial technology startup, has raised $25 million from Tiger Global in its newest and ongoing financing round, putting it beyond the billion-dollar value level, according to a source familiar with the situation.
Upstox did not immediately react to a request for comment or confirmation from YourStory. According to the insider, the startup is still working on closing the deal. According to a second source familiar with the talks, Tiger Global could invest $100 million in the business, albeit the agreement hasn’t been finalised yet. Upstox’s funding was first reported by Entrackr, which claimed that the online brokerage startup’s valuation had eclipsed Groww’s, which had just been valued at $3 billion.
Upstox has authorised the allotment of 18,761 Series C preference shares at an issue price of Rs 98,608. According to regulatory records seen by YourStory, Upstox has approved the allotment of 18,761 Series C preference shares at an issue price of Rs 98,608. Since Upstox’s latest investment round, the price per share has increased by 28 times.
Tiger Global owns around 31.1 per cent of Upstox, having invested $25 million in 2019. Ratan Tata and Kalaari Capital are also investors in the startup. Tiger Global is also an investor in Upstox’s rival Groww. It invested close to $83 million in Groww’s series D round.
Upstox, which is owned by RKSV Securities and was founded in 2009 by Shrini Viswanath, Raghu Kumar, and Ravi Kumar, has been laser-focused on enhancing its product offerings and technology stack over the previous couple of years. It aspires to serve the next 500 million Indians who will turn to the internet for all of their financial needs.Upstox provides consulting services in addition to allowing consumers to buy and sell stocks and other financial products on its platform.
Over the last two years, online trading platforms have seen a sharp increase in the number of retail investors as people began to invest their money in instruments like mutual funds, digital gold, bonds, and ETFs, which typically offer higher returns than traditional banking instruments like FDs and RDs.
Zerodha, Paytm Money, Angel Broking, and a variety of other stock trading platforms are among Upstox’s competitors.
Source: Business World