Delhi based fintech startup WealthBucket announced that it has raised INR 18 Cr in a funding round from NorthStar Ventures, founder of Devnagri, Vinod Khatumal, and other high net worth individuals (HNIs). With the recently raised funds, the startup will take its mutual fund product offerings to Tier 2 and Tier 3 cities. Additionally, WealthBucket will utilise the funds to improve technology capabilities, customer acquisition, and improving the overall experience of users on the platform.
WealthBucket was founded by Himanshu Jain and Pulkit Jain in 2018 with an initiative to provide a platform that connects the customers looking to invest in mutual funds. This platform provides investment options including in SIP, Equity Linked Saving Schemes, Lump-sum and other methods of investment.
“Our aim is to invest this money in building our technology and operational team. We will focus on the underserved segment of the market. That is, the people who are not investing because of the complicated investment process and lack of knowledge,” said Pulkit Jain, co-founder of WealthBucket.
The founders said in a statement that the fund will be used to increase its employee strength to 100+ and expand its operations PAN India. Along with this, the funds will be used in technology to simplify the KYC and investment process. The startup also plans to enable insurance and investment in stocks via their platform.
Since its inception in 2018, the startup claims to have processed over 150K transactions till date. WealthBucket also claims to have witnessed more than half of its users are first-time investors. The startup also claims to have generated investments worth INR 150 Cr on the online platform.
As of now, the startup doesn’t charge any fee from users to invest in mutual funds using its platform. Additionally, a user without a Demat account, which is required to trade in stocks registered in India, can invest in various mutual fund options on WealthBucket’s platform. Himanshu said, “Our idea is to provide a zero-commission model, where the investor can choose through a multitude of investment options.”
After the customer submits the online application, WealthBucket’s algorithm connects the investor to the right type of investment (suitable to the needs of the investor). Additionally, the startup also helps individuals to become mutual funds distributors, earning commissions by selling WealthBucket’s offerings. These WealthBucket partners get all the essential tools and services which are required to create a successful distributing system of mutual funds.
This one-year-old startup also plans to leverage its own employee/agent network to introduce MFs to tier II and tier III clients. Himanshu Jain said, “Today, every millennial is considering a better proposition of investment to real estate and gold. Mutual funds come on the top of the list. Previously, only high-commissioned shares and mutual funds were sold through financial advisors. Our idea is to provide a model, where the investor can choose through a multitude of investment options. Our experts create low-commission portfolios for retail investors and will strive to make investment a hassle-free experience.”
Recently, Flipkart’s cofounder Sachin Bansal’s BAC Acquisitions has acquired Essel Mutual Funds. Moreover, in September 2019, personal wealth management platform Scripbox had acquired another wealth management startup Upwardly to support its mutual product offerings.
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