WealthBucket will utilise the funds to improve technology capabilities and customer acquisition
WealthBucket is an online mutual fund marketplace
The startup was founded by Himanshu Jain and Pulkit Jain
Delhi based fintech startup WealthBucket, on Tuesday (December 31), announced that it has raised INR 18 Cr in a funding round from NorthStar Ventures, founder of Devnagri, Vinod Khatumal, and other high net worth individuals (HNIs).
With the recently raised funds, the startup will take its mutual fund product offerings to Tier 2 and Tier 3 cities. Additionally, WealthBucket will utilise the funds to improve technology capabilities, customer acquisition, and improving the overall experience of users on the platform.
Founded by Himanshu Jain and Pulkit Jain, WealthBucket is an online marketplace that provides mutual funds investment options such as systematic investment plan (SIP), equity-linked saving schemes, lump sum mutual fund, and other investment tools.
Since its inception in 2018, the startup claims to have processed over 150K transactions till date. WealthBucket also claims to have witnessed more than half of its users are first-time investors. The startup also claims to have generated investments worth INR 150 Cr on the online platform.
As of now, the startup doesn’t charge any fee from users to invest in mutual funds using its platform. Additionally, a user without a Demat account, which is required to trade in stocks registered in India, can invest in various mutual fund options on WealthBucket’s platform. Himanshu said, “Our idea is to provide a zero-commission model, where the investor can choose through a multitude of investment options.”
Additionally, the startup also helps individuals to become mutual funds distributors, earning commissions by selling WealthBucket’s offerings. These WealthBucket partners get all the essential tools and services which are required to create a successful distributing system of mutual funds.
After the customer submits the online application, WealthBucket’s algorithm connects the investor to the right type of investment (suitable to the needs of the investor).
Stressing that the startup’s focus is to help people who are not investing because of low credibility in fintech companies, Pulkit said that WealthBucket’s focus is to encourage this unserved segment of the market to come forward and invest in options available to them.
Online mutual fund products have become a lucrative segment for fintech players in the country. For instance, in September 2018, Times Group’s ETMoney shifted gears from offering regular mutual funds to direct mutual fund plans.
Recently, Flipkart’s cofounder Sachin Bansal’s BAC Acquisitions has acquired Essel Mutual Funds. Moreover, in September 2019, personal wealth management platform Scripbox had acquired another wealth management startup Upwardly to support its mutual product offerings.
