Exclusive: Investment Tech Startup Smallcase Bags INR 99 Cr In Series B

Investment tech startup Smallcase funding is raising INR 99 Cr in a mix of equity and preference shares from a clutch of investors as a part of its Series B round. DSP Asset Management Firm, Sequoia’s SCI Investment V, Milestone Trusteeship Services, BEENEXT and Unitary Funds participated in this round.

Other investors Relativity Investment Advisors’ Nakul Zaveri, Universal Trustees Private, Chanaya Value Creation, QED Innovations Lab and AIB’s Tanmay Bhat also participated in this round. Smallcase will use this funding to meet its growth objectives and strengthen its financial position.

According to the ministry of corporate affairs filings, Smallcase has allocated 55 equity shares at a face value of INR 10 and a premium of INR 96,295 per share, 4,961 Series B Compulsory Convertible Preference Shares (CCPS) and 5,266 Series B1 CCPS of the face value of INR 50 and premium of INR 96,255 per share.

The filings further highlight the following details:

• SCI Investments V has picked up 2,336 CCPS and now owns 20.71% stake in the company
• Milestone Trusteeship has picked up 10 equity shares and 1,132 CCPS for 2.90% stake
• BEENEXT has picked up 1,090 preference shares and not owns 7.28% stake
• Unitary Funds has picked up 10 equity shares and 1,963 preference shares for 5.01%
• Chanakya Value Creation has picked 5 equity shares and 211 preference share for 0.55%
• Nakul Zaveri has taken 5 equity and preference shares each for 0.3% stake, while Tanmay Bhat has taken 10 preference shares for the same stake
• QED Innovation Labs has taken 21 preference shares and 5 equity shares for 0.07% stakes  in the company
• Universal Trustees Private has picked up 156 preference shares increasing its shareholding to 1.56%

Notably, DSP Asset Management has invested through DSP Adiko Holdings, DSP Investment Managers and DSP HMK Holdings. DSP HMK Holdings has picked up 821 CCPS and 10 equity shares for 2.11% stake, while DSP Adiko Holdings has picked up 831 CCPS for 3.17% stake. Meanwhile, DSP Investment Managers has picked up 1,651 preference shares and 10 equity shares for 4.22% stake in the company.

Launched in 2016 by Vasanth Kamath, Rohan Gupta and Anugrah Shrivastava, the Bengaluru-based startup provides users with a professionally built basket of stocks called ‘smallcases’, allowing them to invest in portfolios of broker-partner stocks and exchange-traded funds (ETFs) using their personal existing demat accounts. It works with stockbrokers like HDFC Securities, Zerodha, AxisDirect, Edelweiss and 5Paisa.

As of February 2019, the company claimed to have more than 2.5 lakh investors on its platform, who made investments worth over INR 2K Cr. Prior to this, the company had raised  $8 Mn Series A funding led by Sequoia India, with participation from existing investors — Blume Ventures, Straddle Capital, Beenext Pte Ltd, WEH Ventures and DSP Adiko.

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