Tiger Global’s funding could make Mumbai-based Upstox to become a unicorn


New York-based investment firm, Tiger Global Bengaluru being one of the most dynamic supporters of Indian startups, is now doubling down on the domestic online investment and stock brokerage market.

The firm is now in talks to lead a $150-200 million funding round in Upstox – a financial technology startup, and it is already an existing investor in the company with 31% stake.

If the funding round goes through, it will not only make Upstox a unicorn — a privately held company valued at $1 billion or more—but also ascribe it to a valuation that will be significantly higher than in the previous round. Sources privy to the deal details said the Mumbai-based investing platform may fetch a valuation of more than $3 billion.

Upstox, which is owned by RKSV Securities and was founded in 2009 by Shrini Viswanath, Raghu Kumar, and Ravi Kumar, has been laser-focused on enhancing its product offerings and technology stack over the previous couple of years.

It aspires to serve the next 500 million Indians who will turn to the internet for all of their financial needs.

Upstox provides consulting services in addition to allowing consumers to buy and sell stocks and other financial products on its platform.

Over the last two years, online trading platforms have seen a sharp increase in the number of retail investors as people began to invest their money in instruments like mutual funds, digital gold, bonds, and ETFs, which typically offer higher returns than traditional banking instruments like FDs and RDs.

The startup was considering a SPAC (special purpose acquisition company) listing in the US, but the plan did not work out. Earlier this year, it appointed former Amazon executive Thippesha Dyamappa as its chief technology officer.

Zerodha, Paytm Money, Angel Broking, and a variety of other stock trading platforms are among Upstox’s competitors.

Kalaari Capital and Tata Sons Chairman Emeritus Ratan Tata are among the other investors in Upstox.