Wealthtech startup smallcase series D round has attracted USD 50 million (~INR 427.79 crore) , a significant milestone in its journey to make investing in India more accessible. The round was led by Elev8 Venture Partners with major investors including State Street Global Advisors, Niveshaay AIF, Faering Capital and Arkam Ventures.
This round includes primary and secondary transactions and takes smallcase’s total funding to approximately USD 121 million (~INR 1,035.26 crore) across seven rounds since its inception in 2016 by Vasanth Kamath, Anugrah Shrivastava and Rohan Gupta.
A Three-Pronged Growth Strategy
The new capital will be deployed across three areas:
- Expansion of Investment Products: smallcase will add mutual funds, fixed income products, global equities and bonds to its product lineup along with its flagship model portfolios of stocks and ETFs.
- Strengthening Retail Investor Relationships: smallcase will help its 10 million+ users allocate a larger share of their portfolios through the platform by personalization and accessibility.
- Deepening Ecosystem Partnerships: With over 250 financial institutions—brokers, wealth managers and research firms—already on board, smallcase will expand to new wealth channels and platforms.
“The opportunity to help millions of Indians design better financial futures is a big responsibility and we will continue to deliver on it with honesty and integrity,” said Vasanth Kamath, co-founder and CEO of Smallcase.
Elev8’s Backing and Vision
Elev8 Venture Partners, a USD 200 million (~INR 1711.17 crore) growth-stage fund anchored by South Korea’s KB Investment, made this investment as part of its thesis to back high-growth companies in their respective industries.
“Smallcase fits our vision,” said Navin Honagudi, Managing Director and Founding General Partner at Elev8. “They have demonstrated ability to innovate, build trust and scale in a competitive market.”
This is Elev8’s third major bet after IDfy and Astrotalk.
The Zerodha Connection and AMC Ambitions
Smallcase has further strengthened its relationship with Zerodha, one of India’s largest stockbrokers, by launching a joint venture to start an asset management company (AMC). The AMC which focuses on low-cost, passive products like index funds and ETFs has already reached 6,00,000 investors in under 18 months.
Smallcase also holds a minority stake in Zerodha Fund House as part of its strategy to become a full-stack investment platform for retail and institutional investors.
Financials
- FY24 Revenue: INR 56.34 crore, up from INR 20.64 crore in FY23 – a 173% YoY growth
- FY24 Net Loss: INR 163.96 crore, up from INR 130.26 crore in FY23
- FY23 Revenue: INR 31 crore (as per RoC filings)
- FY23 Operating Loss: INR 133 crore
Despite the losses, the company is optimistic about its long-term value proposition. Its expanding product suite and scale up in partnerships indicates it will get better unit economics going forward.
Competition
Smallcase competes in India’s investment tech space along with Univest, Fisdom, and Dhan. The segment has seen growing investor interest as wealthtech platforms use data and technology to offer affordable investing options.
About Smallcase
Founded in Bengaluru, smallcase empowers retail investors by offering curated portfolios of stocks and ETFs, known as “smallcases”, based on investment themes or strategies. The platform is integrated with several broker partners and aims to simplify long-term investing for individuals while also powering B2B financial institutions with custom tech infrastructure.
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