Smallcase raises $50 million in series D round led by Elev8 Venture Partners

Smallcase founder Vasanth Kamath

Smallcase has raised $50 million in a Series D funding round led by Elev8 Venture Partners, with participation from State Street Global Advisors, Niveshaay AIF, Faering Capital, and Arkam Ventures, the Zerodha-backed investment platform said on March 28.

The funds will be used to expand investment product offerings across asset classes and strengthen relationships with retail investors and ecosystem partners, the company said.

“The opportunity to help millions of Indians design better financial futures is a huge responsibility and we will continue to deliver on it with honesty and integrity along with our partners,” Smallcase’s co-founder and CEO Vasanth Kamath said.

Founded in 2016 by Kamath, Anugrah Shrivastava, and Rohan Gupta, Smallcase aims to simplify stock investing for retail investors through professionally managed model portfolios.

Smallcase is a basket or portfolio of stocks or exchange-traded funds (ETFs) representing an objective, theme, or strategy. The platform also offers Real Estate Investment Trust (REIT) and Infrastructure Investment Trusts (InvIT) units to investors.

The firm claims to have expanded its reach and recently got into a joint venture with Zerodha to launch an asset management company focused on index funds and ETFs.

"The new funding will enable the company to integrate asset classes like mutual funds and fixed income while strengthening its technology and data analytics capabilities to empower retail investors further," the firm said in a statement.

Smallcase is also a minority investor in Zerodha Fund House's Asset Management Company, which helps investors choose passive investment.

Smallcase raised $40 million in its Series C round led by Faering Capital with participation from new investors, Amazon and Premji Invest in 2021.

Navin Honagudi, Managing Director and Founding General Partner at Elev8 Venture Partners, hailed Smallcase’s ability to innovate and scale in a competitive market.

“India’s retail investing landscape is undergoing a seismic shift, and Smallcase has been at the forefront of this transformation. Their ability to build trust and expand rapidly makes them a standout player. We believe in backing companies that are not just growing fast but are also shaping industries. Smallcase fits that vision perfectly, and we are excited to support them as they reach millions more investors,” he said.

Elev8 Venture Partners, anchored by South Korea’s KB Investment, focuses on high-growth Indian startups across B2B SaaS, Enterprise Tech, Consumer Tech, and FinTech. This is Elev8’s third investment, following its backing of IDfy and Astrotalk.

According to RoC, Smallcase’s revenue rose 7 percent to Rs 31 crore in FY23 from Rs 29 crore in the previous year. Operating losses widened 40 percent to Rs 133 crore.