Smallcase sponsored by Zerodha has 80% topline growth in FY24
Vasanth Kamath, the founder and CEO of smallcase, told Fe that the investment platform anticipates an 80% increase in revenues in FY24 from a topline of Rs 42 crore in the previous fiscal year. Using a topic or notion as guidance, registered advisers create a basket of equities and exchange-traded funds (ETFs) for investors to choose from on the platform.
In 2023, the total number of users on the platform surpassed 10 million, indicating a 30% annual increase. Over Rs 65,000 crore has been invested or traded on the site, a 50% increase from the previous year. For us, even the inflows increased by 50%. Since the market has performed well this year, our assets in smallcases have doubled in 2023 as well, according to Kamath.
About 150 certified financial advisers, or “creators,” are active on the smallcase platform at the moment. These individuals have put up investment baskets like “Top 100 Stocks,” “All Weather Investing,” and “Green Energy,” among others. Recently, smallcase and stock trading giant Zerodha formed a collaborative venture to start an asset management business with the goal of creating affordable passive mutual fund products.
After launching its debut fund in November, Zerodha Fund House now manages three funds, the fourth of which is currently in its NFO period. According to Kamath, the asset under management has surpassed Rs 500 crore so far, with more than 100,000 investors.
“Once we reach a basket of 15-20 products that can serve as these building blocks, that’s when we’ll figure out how to reach the appropriate user segment,” he said.
IIT grads Vasanth Kamath, Anugrah Shrivastava, and Rohan Gupta created smallcase in July 2016 with the goal of offering transparent and affordable investment options to new investors. Among its principal backers are Amazon, DSP, Blume Ventures, HDFC Bank, and Sequoia Capital.
It had recorded sales of Rs 24.8 crore for FY22, up from Rs 11 crore for the previous year. Based on its RoC filings from Private Circle, losses for FY23 were Rs 76.2 crore, up from Rs 28.3 crore in FY22.
The business intends to enter the mutual fund, fixed income, and retirement product markets this year. Since we now only handle stocks, ETFs, and REITs—just a small portion of the typical user’s portfolio—we’ve been receiving requests lately for the addition of other asset classes. Additionally, they make investments in fixed income instruments, mutual funds, and other goods, according to Kamath.
