Wealthtech startup Smallcase has raised $50 million in a Series D funding round led by Elev8 Venture Partners, with participation from State Street Global Advisors, Niveshaay AIF, Faering Capital, and Arkam Ventures. The Zerodha-backed investment platform announced the funding on March 28.
The fresh capital will help the wealthtech startup, Smallcase expand its investment products across multiple asset classes and strengthen its relationships with retail investors and ecosystem partners.
“The opportunity to help millions of Indians design better financial futures is a huge responsibility and we will continue to deliver on it with honesty and integrity along with our partners,” Smallcase’s co-founder and CEO Vasanth Kamath said.
Founded in 2016 by Kamath, Anugrah Shrivastava, and Rohan Gupta, Smallcase simplifies stock investing through professionally managed model portfolios. The platform offers curated baskets of stocks and exchange-traded funds (ETFs) based on specific themes, strategies, or objectives. Investors can also access Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The wealthtech startup has been expanding rapidly and recently partnered with Zerodha to launch an asset management company specializing in index funds and ETFs.
“The new funding will enable the company to integrate asset classes like mutual funds and fixed income while strengthening its technology and data analytics capabilities to empower retail investors further,” the firm said in a statement.
Smallcase is also a minority investor in Zerodha Fund House’s Asset Management Company, which focuses on passive investment options.
In 2021, the company raised $40 million in a Series C round led by Faering Capital, with participation from new investors Amazon and Premji Invest.
Navin Honagudi, Managing Director and Founding General Partner at Elev8 Venture Partners, praised Smallcase’s innovation and rapid expansion.
“India’s retail investing landscape is undergoing a seismic shift, and Smallcase has been at the forefront of this transformation. Their ability to build trust and expand rapidly makes them a standout player. We believe in backing companies that are not just growing fast but are also shaping industries. Smallcase fits that vision perfectly, and we are excited to support them as they reach millions more investors,” he said.
Elev8 Venture Partners, backed by South Korea’s KB Investment, invests in high-growth Indian startups across B2B SaaS, Enterprise Tech, Consumer Tech, and FinTech. This marks Elev8’s third investment, following its backing of IDfy and Astrotalk.
According to RoC data, Smallcase’s revenue increased by 7% to ₹31 crore in FY23, up from ₹29 crore in the previous year. However, operating losses widened by 40% to ₹133 crore.
