Investment management startups seem to have become the darlings of investors. Fintech platform INDmoney, which helps its users manage money across investments, taxes, loans, expenses and taxes through a single platform, is in talks to raise $ 100 million in a run by existing investor Tiger Global Management Gather round, so two people who are familiar with the development.
Sources went on to say that this round is expected to be worth a whopping $ 500 million INDmoney. The company last raised funds in January 2020.
“Tiger is leading a $ 100 million round and existing investors like Steadview and Dragoneer are likely to participate,” said one of the sources who requested anonymity. “The terms of the deal are almost complete and will likely be announced soon,” added the person.
Interestingly, Tiger Global has also invested in other companies in the same space: Groww, which recently achieved a unicorn rating, and Upstox, another platform that helps its users manage investments.
INDmoney has raised $ 58 million from investors including Tiger, Steadview Capital, and Dragoneer since its inception in 2019. Founded by Ashish Kashyap – who previously launched the Goibibo travel platform – INDMoney also uses its robo-advisor to guide clients who are mostly between 25 and 45 years old.
INDMoney also enables Indian users to invest in US stocks through its platform.
In August 2020, the Bengaluru-based company had began to offer Third party loan products ranging from home, personal loans, versus property, and versus investment. According to the company’s website, a personal loan can range from 12 to 36% while the interest rates on a business loan range from 12 to 22%.
“INDmoney has been expanding its product offerings such as loans and on-demand credit over the past 12-15 months and the new revenue will likely be used in the company’s expansion plan,” said the second source.
According to media reports, the company will soon enter the insurance segment. INDmoney’s other major competitors include Zerodha and Paytm Money.
Tiger Global declined to comment on the story. Inquiries to INDmoney remained unanswered at the time of this writing. We’ll update the story as soon as it reacts.
While the company does not yet have to file its financial statements for FY21, it has recorded Operating income from Rs 1.07 crore. The company increased its total revenue 2.3 times to Rs 7.26 billion from Rs 3.17 billion in FY19. In FY20, the company’s total spending increased to Rs 19.12 billion from Rs 3.06 billion in FY19.
As the pandemic devastated the country and the world in 2020 and 2021, many people with disposable income and no place to invest turned to these new age platforms to make and manage their investments. This gave companies like INDMoney, Zerodha and others a massive boost in this segment – which made them attractive to investors.
In the online brokerage space, around 11.3 million new Demat accounts were added between January 2020 and September 2021, to which Zerodha had contributed with 3.7 million accounts.