Upstox becomes a unicorn with a fresh round from Tiger Global

In November five startups became unicorns, two of which only joined the coveted club this week. Now a sixth company has become a unicorn this month: Upstox.

The online investment platform raised $ 25 million from existing investor Tiger Global. The new funding appears to be part of a larger round for the company.

Upstox has approved the allotment of 18,761 Series C preferred shares at an issue price of Rs. 98,608 in order to raise Rs.185 billion, or $ 25 million, from Tiger Global, regulatory filings indicate.

Corresponding Fintrackrs It is estimated that Upstox raised the fresh funds at a valuation of $ 3.4 billion, or rupees 25,458 billion (after the money). The price per share is 28 times higher than the Series B price of 3,514 rupees per share

With that, Upstox’s rating has surpassed its close rival, Groww, the recently valued at $ 3 billion after a $ 251 million financing round in October. It’s also the 40th startup to be valued at over $ 1 billion in 2021.

Upstox

Tiger Global is an existing investor in Upstox and had invested $ 25 million in the company’s second institutional round in September 2019.

Upstox enables private investors to trade on the stock market via the platform and also enables mutual fund investments as well as trading in futures and options.

While Upstox does not yet have to submit its annual financial statements for FY21, the company has improved his annual income by 99.6% to around Rs 154.7 billion in FY20. Upstox had an after-tax profit of Rs 13.06 billion in FY19, but as costs increased it slipped into losses of nearly Rs 38 billion in FY20.

The company generated 80.7% of its revenue from brokerage and related service fees collected from users on its platform in FY21.

Upstox competes directly with Zerodha, Groww and IndMoney. Apart from Zerodha, Tiger is an investor in all three listed companies. IndMoney, led by Ashish Kashyap, is also in talks to start a new round. Corresponding TrickypediaSources, INDmoney is likely Raising $ 100 million from new and existing investors.

This is a developing story …

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