Delhi-based online advisory platform, Bharosa Club has secured an undisclosed amount in a bridge financing round from the company’s management and investors.
The raised funds will be used to scale up its product offering and network, and to boost its aim to reach the 1Mn customer milestone.
Founded in 2015 by Sanjay Bhargava, Anita Bhargava, and Prakash Pai, the platform built on an easy to use, high technology framework, addresses the issue of financial literacy and offers customers easy access to financial products such as mutual funds, term insurance and loans.
The company plans to raise around $2 Mn (INR 15 Cr) by the end of this year in its Series A round.
Sanjay Bhargava, Chairman, Bharosa Club said, “What attracts investors to Bharosa are right asset allocation, tested and unbiased advice on fund selection, an easy to use interface and commission free investing.”
The company has been authorised by the SEBI as a Registered Investment Advisor (RIA). It claims to have an open-to-public algorithm that helps investors to identify good performing mutual funds. As per an official statement, the company has assets under its advisory management amounting to $15 Mn with more than 2700 members.
The company is also in talks with several institutions for Financial Wellness Programmes to partner for mutual funds. It is also in the final stages of developing a product specifically targeted at HNIs and serious mutual fund investors.
“We want to show our impact through numbers. In our testing phase, in some cases we have created an alpha of over 20% over a 3 year back tested period. While this will vary from investor to investor; the impact that great advice can have on large portfolios can be tremendous,” he added.
Bharosa Club offers its users three pricing plans, Basic, which is free for first-time investors, Premium, a paid plan for regular mutual fund investors and Pro, for bigger players. In future, the company is also looking to get savings for its premium and pro members by negotiating group insurance starting with term life.
Other players in the segment include Tavaga, Scripbox, RKSV, Zerodha etc.
