[Update] Exclusive: Tiger Global, Steadview Invest $86 Mn In Wealthtech Startup IndMoney At Over $640 Mn Valuation

Update| 17th January, 7:30 PM

Ashish Kashyap, founder of IndMoney has confirmed IndMoney’s latest fundraise. Kashyap said that IndMoney is raising a total of $86 Mn at a valuation of around ~$640 Mn. He said that the startup will utilise the fresh capital for inorganic growth, customer acquisition, to build a credit stack in the coming months.

Original Story | Published On 17th January, 3:43 PM

Wealth management startup IndMoney has raised close to $76 Mn in a fresh round of investment co-led by Tiger Global, Steadview Capital, and Dragoneer (DF International) at a $600 Mn valuation. 

As per the regulatory filing accessed by Inc42, the three investors have equally pumped in close to $25 Mn for 14,212 Series D compulsory convertible cumulative preference shares.

With this investment, Steadview Capital now holds close to 37.32% in IndMoney on a fully diluted basis. While Tiger Global holds 17.66%, DF International will hold around 4.25% in the startup.

The investment comes almost two years after IndMoney raised close to INR 87 Cr in its Series C funding round from the same set of investors i.e. Tiger Global, Steadview and DF International. 

IndMoney has over the years raised multiple rounds of investment in small portions from these investors. 

Founded by Ashish Kashyap in 2019, IndMoney claims to be a one stop SuperMoneyApp for all finances. The app organises users’ finances, helps them to plan their goals and uses machine learning to help them save and invest at zero commissions. 

The company likes to call itself as a CFO to its customers’ family.

With the help of the app, users can invest in the stock market, mutual funds, US stocks, bonds, and fixed deposits. 

The startup’s website claims that it has over 3 Mn customers  and around 2 Mn Indians trust their INR 1 Lakh Cr investment on IndMoney app.

IndMoney has posted a total earnings of INR 7.25 Cr during the financial year ending on March 31, 2020, a 128% increase from INR 3.17 Cr it posted in FY19. The startup’s expenses rose to INR 19 Cr in FY20, an almost 6X rise from INR 3.06 Cr in FY19. 

In FY20, IndMoney posted a total loss after tax of INR 11.73 Cr, an almost 180X rise from INR 6.4 Lakh.

The startup directly pits against the likes of bootstrapped turned unicorn Zerodha, and new entrant to the unicorn club – Groww. IndMoney also pits against the likes of Upstox which is on the verge of achieving the billion dollar valuation after it completes its ongoing funding round. 

The advent of online stockbroking platforms has sparked an interest among millennials towards the growing stock market. The Indian investment tech market is poised to grow to over $60 Bn by FY25, from its current market size of $20 Bn. Apart from Upstox, Groww and Zerodha, Vijay Shekhar Sharma’s Paytm Money, Amazon-backed Smallcase and ETMoney are also tapping the market. 

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