Contribution from other investors
Sequoia India led the funding round
According to a report, Smallcase had raised a seed round of $450,000 in October 2015 led by Blume Ventures. In July 2017, the company raised another $1.63 million from Blume and others. Similarly, last year, Smallcase secured $5.68 million from SCI investments.Both Blume and Sequoia Capital India are investors in another fintech startup, Turtlemint.An online insurance firm, Turtlemint had recently raised $25 million (INR178 crore at current exchange rates) in a fresh funding round led Sequoia Capital India.
In last year, Sequoia Capital India closed its sixth fund at $695 million to invest in early and growth-stage companies in the country and Southeast Asia, where it has made over 200 bets in startups.Blume achieved the first close of its third fund at $40 million (INR293 crore) last October.
New asset tools for investors
Smallcase Technologies creates new asset tools that allow investors to take a portfolio level exposure to stocks and exchange-traded funds (ETFs). It also provides tools to research firms to help them create their own ‘smallcases’ and also build platforms to help transactions through ETFs.
The companyutilizes fresh capital to create a differential that will brand itas a new investment instrument.Since the introduction of the platform in July 2016, Smallcase has a total user base of 2.5 lakh investors that have transacted over INR 2000 crores in smallcases.
Complete control and transparency of stocks
VasanthKamath, Chief Executive of Smallcase said that the fundamental stocks will be held in the demat account of the investor thus allowing complete control and transparency. Further, he stated, “Our aim is to get financial advisors to start selling smallcases as well, as an alternate investment option beyond mutual funds.
