Mumbai-based RKSV, an online brokerage and trading company, has raised about $4 Mn (INR 27 Cr.) in a fresh round of funding from Kalaari Capital, reported ET. The round also saw participation from GVK Davix Technologies and other investors.
As part of the deal, Kalaari Capital MD, Vani Kola, has joined the board of the company along with Bala Srinivasa.
Founded in 2009 by Raghu Kumar, Ravi Kumar and Shrinivas Viswanath, RKSV, is a retail brokerage firm for securities and commodities. The company helps retail traders shave off their brokerage costs by providing online trading software (mobile and web) for free, and a low cost brokerage plan.
Being a discount broker, RKSV’s brokerage structure offers different plans to suit users requirement. Its transaction charges are competitive with other discount brokers in India; they charge transaction or turnover charges at INR 350 per Cr. for equity INR 210 per Cr. for futures and INR 5500 per Cr. for options (on premium).
Like other online stock trading companies, RKSV provides trading services to buy & sell stocks, futures & options online. Its commodities provides trading services to buy & sell commodities online.
Currently, the company is clocking in a daily traded turnover of over INR 6000 Cr. across the NSE, BSE and MCX, and is looking to go for an average of INR 10,000 Cr. of daily traded turnovers by the end 2016.
The startup is planning to rollout its Upstox mobile application, which is currently in Beta mode. The raised capital will be used for product upgradation, expansion of top-level engineers and designers to scale up the app. Kumar estimates that over 5,000 users will be active on the app within three months.
Other brokerage firms like Infoline, Sharekhan and Edelweiss have also created their mobile applications to help customers transition from offline to online trading.
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