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Exclusive: Zerodha Fund House in talks to raise up to $100 Mn

EntrackrEntrackr · 1y ago
Exclusive: Zerodha Fund House in talks to raise up to $100 Mn
Medial

Stock broking space has turned hyper competitive in the past two years and the players in the space have been diversifying into more investment products. After Groww, launched its own mutual fund, stock broking major Zerodha and Smallcase created a joint venture – Zerodha Fund House – to float an asset management company or a mutual fund in 2023. Now, Zerodha Fund House is eyeing external investment, said three sources aware of the details of the conversation. “They are in preliminary discussions with several investors to raise up to $100 million for the AMC business,” said one of the sources requesting anonymity. For the uninitiated, this would be a first for the Zerodha Group to seek external fundraise ever. The Kamath brothers-owned stock-broking company has been bootstrapped since 2010. “The talks are exploratory in nature and Zerodha Fund House may take months to finalize the deal,” said another source who also wished not to be named as this person isn’t authorized to speak to the media. Zerodha Fund House is managed by an entity named Zerodha Assets Management Private Limited. According to the data sourced from the startup data intelligence platform TheKredible, Zerodha Broking owns 70% of the share capital while the remaining stake belongs to Smallcase. Zerodha Fund House launched its two index funds: Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha ELSS Tax Saver Nifty Large MidCap 250 Index Fund with a portfolio of 250 Indian companies. The company also launched its Liquid [with an asset under management (AUM) of Rs 311 crore] and Gold ETF with an AUM of Rs 35 crore. According to sources, Zerodha got into the AMC business as it wants to assemble different pieces of wealth management along with its core stock broking business. Queries sent to Zerodha Fund House and Smallcase on Monday didn’t elicit any response. We will update the story in case they respond. The stock breaking space has been witnessing fierce competition with four major players: Zerodha, Groww, AngelOne and Upstox. Groww surpassed Zerodha in terms of users in October last year. Interestingly, all four players were profitable in the fiscal year ending March 2023.

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Zerodha's AMC 'Zerodha Fund House' in talks to raise up to $100 million in funding: Report

IndianStartupNewsIndianStartupNews · 1y ago
Zerodha's AMC 'Zerodha Fund House' in talks to raise up to $100 million in funding: Report
Medial

Zerodha Fund House, the asset management company of Zerodha, is reportedly in talks to secure up to $100 million in external funding. The move comes as Zerodha aims to expand its mutual fund offerings and strengthen its position in the competitive stock broking and asset management market. Zerodha Fund House is a joint venture between Zerodha and Smallcase, offering transparent and affordable mutual fund options to investors. The fundraising efforts indicate a strategic shift for Zerodha, which has been self-funded since its establishment in 2010. The Indian asset management industry is experiencing increased competition with the entry of new players and the launch of new mutual fund schemes.

Exclusive: Spinny in talks to mop up over $100 Mn in internal round

EntrackrEntrackr · 9m ago
Exclusive: Spinny in talks to mop up over $100 Mn in internal round
Medial

Exclusive: Spinny in talks to mop up over $100 Mn in internal round Tiger Global-backed Spinny is in talks to raise over $100 million in a new round mostly financed by existing investors, said three sources aware of the contours of the deal. Used car platform Spinny is preparing for a new round almost after a gap of over three years. The Tiger Global-backed company is in talks to raise over $100 million in a new round mostly financed by existing investors, said three sources aware of the contours of the deal. “Spinny could raise up to $120 million from internal investors including Elevation Capital, Abu Dhabi Growth Fund, General Catalyst and Accel among others,” said one of the sources on condition of anonymity. Sources assert that the talks are in an early stage and it may take a quarter to materialize. If the deal gets through, Spinny would be the first used car platform to raise a new round since late 2021. As per sources, its valuation more or less remains unchanged in the potential round. Market analysts point out that Spinny has emerged as a clear leader with a large delta in the used car retail space as the company appears to have cracked demand first transaction model. It has achieved this on the back of one of the lowest consumer acquisition costs and better gross margin. The Gurugram-based company also scaling auction-based verticals for dealers and car-financing businesses. Most of the money from the new round is likely to be deployed to grow the lending biz, said sources. “Spinny sells close to 7,000 cars every month with an average transaction size of around 6 lakhs. It also sells around 5000 more cars every month on its B2B auction platform,” said the source mentioned above. Queries sent to Spinny, Accel, Elevation and General Catalyst did not elicit an immediate response. According to startup data intelligence platform TheKredible, Spinny has raised around $500 million to date. Tiger Global and Accel are its largest stakeholders with 14.25% and 13.25% holding respectively. For the fiscal year ended in March 2024, Spinny’s revenue from operations increased to Rs 3,725.02 crore from Rs 3,259.78 crore in FY23​. During the period, its losses reduced by 28% to Rs 590.37 crore.

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