Smallcase’s valuation surges to Rs 374 Cr after latest infusion from HDFC

Stock market-focused fintech platform Smallcase had recently closed a $14 million Series B round with investment from HDFC Bank. While the company didn’t disclose the amount invested by the bank, Fintrackr has decoded the details of the deal through regulatory filings.

HDFC Bank has picked up 10 equity shares and 294 Series B CCPS at an issue price of Rs 96,305 each share to invest Rs 2.93 crore, regulatory filings seen by Fintrackr show.

Smallcase has been building a three-dimensional ecosystem focused on investors, advisors and brokers. It helps individuals to invest in the equity market via products called ‘smallcases’. These are powered by its publishing platform that helps advisors to offer ready-made portfolios to their clients with past performance, ratios and risk-levels computed by the system.

Retail brokerage partners leverage ‘smallcase’ as a primary product offering to help individuals to build their investment portfolio. Besides individuals, the company’s products are being used by asset management companies or AMCs.

The four-year-old company has 11 broking partners and claims to have deployed over Rs 5,000 crore through its platform. According to Fintrackr, the tranche from HDFC has valued Smallcase at Rs 374 crore or $52 million. After infusion from the private banking major, the ownership of the co-founders has reduced to 25.1%.

Of late, there has been a race to become a super app for managing the wealth of 200 million Indians who invest in mutual funds and stocks. The stock trading platforms have been witnessing a surge in investors’ interest in the stock market. The company counts Zerodha, Paytm Money, Ind Money, ET Money, India Infoline, Groww and Cube Wealth as competitors.

It’s worth noting that Smallcase has been integrated with brokerage platforms including HDFC Securities, a subsidiary of HDFC Bank. Smallcase also educates investors through regular blog posts. It counts Sequoia Capital, Blume Ventures, Beenext, WEH and Staddle Capital as investors.