Mumbai-based discount broking firm SAMCO has raised $7.5 Mn (INR 49 Cr) in a Series B funding round from existing promoters and London-based investment management firm Bay Capital Investment Partners.
The startup plans to use the funding towards building its mutual fund distribution, lending capability, research and advisory businesses.
On the fundraise, Jimeet Modi, Founder & CEO, SAMCO Securities said, “This transaction allows SAMCO to allocate growth capital for adding business verticals, which shall aid revenue and profit contribution for the next phase of growth.”
This follows Series A funding of $3 Mn (INR 20 Cr) raised by the company in FY 2016.
According to media statement, SAMCO’s core broking operations of the company have been adequately capitalised and are generating enough free cash flow.
On the investment, Siddharth Mehta, Founder, Bay Capital said,” SAMCO has had an impressive growth trajectory. It has been successful in delivering unique solutions to its customers from the complex requirements of the market.”
Venture Capitalist firm Bay Capital was founded by Puneet Saraogi and Siddharth Mehta, which focuses investments in sectors like healthcare, information technology, manufacturing, media, and communications.
SAMCO was founded by Jimeet Modi in March 2015. It offers online Discount Broking and Depository services, Commodities Discount Broking, and also offers non–banking services.
With vast clientele ranging from corporates to individuals, SAMCO caters its services to over 75,000 customers across India.
SAMCO Securities has recently launched an artificial intelligence and advanced analytics-based giga trading app ‘StockNote’ to provide its customers a deeper insight while making better investment or trading decisions. The startup aims to achieve 1 Mn downloads of StockNote by March 2019.
India has witnessed a growing emergence in the fintech space.Most recently, Kalaari Capital-backed Rubique, Capria Network-backed Unitus Ventures and SAIF Partners and Sequoia India-backed online lending platform Capital Float raised fresh fundings
Overall, as per Inc42 DataLabs’ Indian Startup Funding report 2017, the Indian fintech industry has received $3.01 Bn across 111 deals in 2017. And the sector continued to lead its growth, as according to Indian Tech Startup Funding Q1 2018 report, fintech as a sector witnessed the highest funding.
With an innovative approach to stock markets, SAMCO has a promising untapped market. As the startup has huge scalability proportions, it can expand itself leaps and bounds with the latest funding by Bay Capital.