Amazon enters India’s wealth management sector, bets on startup
An Indian security guard walks inside Amazon’s largest Fulfillment Centre (FC) in India, on the outskirts of Hyderabad. (Photo: NOAH SEELAM/AFP/Getty Images)
AMAZON has entered India’s wealth management sector by participating in a $40 million (£29m) investment round by fintech startup Smallcase Technologies Pvt.
The Bangalore-headquartered startup said the round was led by Faering Capital Pvt and joined by another new investor Premji Invest, the private investment office of technology billionaire Azim Premji.
Existing backers of the startup Smallcase including Sequoia Capital India and Blume Ventures also participated, increasing the total capital raised by the firm to over $60m (£43m).
Smallcase was founded in 2015 by three friends Vasanth Kamath, Anugrah Shrivastava and Rohan Gupta, all alumni of the premier Indian Institute of Technology in Kharagpur.
The company provides digital access to capital markets by offering weighted portfolios of stocks and exchange traded funds through in-house licensed professionals, independent investment managers, brokerages and wealth platforms.
It has tie-ups with brokerages in the country, and distributes its products via broker partners, wealth advisers and offline agents.
The capital raised by the company, will be used to continue launching better investment products for retail investors, and create additional value for smallcase’s partners by enhancing the platform and its capabilities.