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Smallcase raises $40 million from Amazon, Premji Invest and Faering Capital

The startup will use this funding to add more asset classes and grow its use cases. It is currently in the process of adding mutual funds, bonds, and global equities to the platform.

August 18, 2021 / 05:56 PM IST

Wealth management platform Smallcase said on August 18 that it has raised $40 million in its Series C round funding led by Faering Capital along with Amazon Sambhav Venture Fund (ASVF) and Premji Invest. This investment marks Amazon’s entry into the wealth management space in India.

The round also saw participation from existing investors including Sequoia Capital India, Blume Ventures, Beenext, DSP Group, Arkam Ventures, WEH Ventures, HDFC Bank Group, and Utpal Sheth, CEO of Rare Enterprises. With this round of funding, the Bengaluru-headquartered startup has raised a total of over $60 million, and the company is now valued at $200 million.

Speaking to Moneycontrol, the startup’s Founder and CEO Vasanth Kamath said, “We will use this fundraise to continue enhancing our platform and grow the ecosystem we have built. We also plan to add more asset classes and instruments so that our platform can provide more use cases like financial planning and advisory.”

Kamath added that the startup is currently working towards introducing more asset classes. “We are working on adding mutual funds, bonds, and global equities on our platform. These are currently at different stages of integration,” he said.

An Amazon spokesperson said, “In April this year, we launched the Amazon SMBhav Venture Fund (ASVF) to invest in early-stage tech startups. As part of this Fund, we are excited to partner with Smallcase in their journey to offer innovative consumer investment products. By increasing product selection and convenience, this will provide an additional channel for consumers to participate in the equity markets.”

Launched in 2016, Smallcase is a platform for direct indexing and model portfolios of stocks and ETFs called smallcases. The startup has over 250 capital markets participants including brokerages, advisors, investment managers, and wealth platforms to create and distribute products.

The company added that since its Series B raise in September 2020, its user base has doubled to three million and transaction volumes have increased by 2.5 times to Rs 12,500 crore.

Its list of angel investors also includes Zerodha Founder & CEO Nitin Kamath, CRED Founder and CEO Kunal Shah among others.

Priyanka Iyer
first published: Aug 18, 2021 05:56 pm