Investment startup smallcase raises $14 million from DSP, Sequoia and others

Smallcase CEO Vasanth Kamath estimates there are about 2 million users and about Rs 5,000 crore has been transacted in smallcases.

Earlier this year, smallcase launched its gateway offering, which helps any app to provide stock, ETF & smallcase transactions in a native, secure and compliant manner. Eleven apps and platforms, including Moneycontrol, SBI Mutual Fund, Nippon AMC, Kuvera, have integrated the smallcase gateway to power stock & ETF transactions.

While smallcase has, so far, operated by selling its platform and service to brokerages, making it a business-to-business firm, it also wants to reach out to consumers directly.

“Many consumer and retail investors still don’t know about us, so increasing awareness by reaching out directly is a focus, which is why we also launched our own app in April,” Kamath told Moneycontrol.

In the next few years, Kamath thinks direct transactions can grow to about 25 percent of its overall business, indicating brokerages and other wealth management platforms will still be a priority.

“The desire to shift savings from banks to capital markets is hindered by high costs and structural issues like undersupply of passive investment options. As an active investor in middle India themes, with insights into evolving fintech, we believe smallcase will usher in the shift to passive investing in India through its scalable technology and unique business mode,” Arkam Ventures  managing director Rahul Chandra said.  

Disclosure: Moneycontrol has partnered with Smallcase Technologies to invest directly from its platform.