Vested Finance that allows Indians to invest in US stock market raises $3.6 million

Industry PE (price-to-earnings ratio) is one of the key aspects to look at as it provides an average comparative multiple for any company within the sector. Theoretically, it is a general perception that if the stock’s PE is lesser than the industry average, it is undervalued. However, there could be other reasons for a stock's decline. In the BSE universe, there are just 8 stocks that have gained over 50 percent in the last 3 months, but their current P/E is still below the industry average P/E. We considered only companies with a market-cap of over Rs 5,000 crore. (Data Source: ACE Equity)

Silicon Valley-based online investment platform Vested Finance has raised $3.6 million in seed funding from foreign and domestic investor, including Moving Capital, Ovo Fund and TenOneTen Ventures, Inflection Point Ventures and Venture Catalysts.

The company allows Indians to invest in the US stock market will use funds to accelerate product development and hire talent across the US and India.

“Our focus following this seed round is on accelerating product development to create a seamless and cost-effective end-to-end US investing experience," Vested Finance CEO and co-founder Viram Shah said.

Founded two years ago, the company says it has seen rapid growth in 2020. Money deposited into Vested accounts grew 26x over the last twelve months, along with a 5x increase in US brokerage accounts opened through the platform.

Vested processed more than $100 million in trades in 2020 and more than half of the investors using the platform are investing in the US market for the first time.

“Individuals in India have been contributing to the top and bottom line of international companies for decades but have never had the chance to create wealth by investing in them,” Shah said.

The company offers a zero-commission online platform that requires no minimum balance. Investors can choose individual stocks or ETFs, or select from a variety of “Vests,” Vested’s curated portfolios constructed with various goals, themes, and risk levels in mind.

“The United States is a global center of innovation, and people around the world can benefit from investing in the US markets. Vested is bringing this cross-border investment opportunity to India and beyond, allowing local investors to diversify globally by spreading out their risk, and we’re excited about the possibilities Vested will bring to individuals in India, Southeast Asia and around the globe," said Gil Elbaz, partner, TenOneTen Ventures.

Vested has partnered with more than 25 brokers, fintech, and wealth management firms in India, including Axis Securities, Kuvera, Angel Broking and 5Paisa, besides global digital trading technology platform DriveWealth to power its offerings.