Wealthtech Startup Smallcase Secures $50 Million in Series D Funding

Wealthtech startup Smallcase has successfully raised $50 million in its Series D funding round, led by Elev8 Venture Partners, a growth-stage fund with a total of $200 million, dedicated to supporting high-potential startups in India. This round also included contributions from State Street Global Advisors, Niveshaay AIF, Faering Capital, and Arkam Ventures.

The investment will be utilised to enhance Smallcase’s offerings of investment products across various asset classes and to further establish its connections with retail investors and ecosystem partners, as stated in a press release from Smallcase.

This new funding round marks a significant moment following a hiatus of more than 3.5 years. To date, Smallcase has accumulated approximately $120 million in total funding, which includes $40 million from a Series C round led by Faering Capital in August 2021. As per data from startup intelligence platforms, Peak XV stands as the largest external stakeholder, closely followed by Faering Capital and Blume Ventures.

About Smallcase

Founded in 2016, Smallcase provides a model portfolio platform that has benefited over 10 million investors. The startup also delivers technological solutions to over 250 financial institutions, which encompasses research firms, advisors, wealth managers, and brokerages. Recently, Smallcase expanded its services through a partnership with Zerodha, leading to the creation of an asset management company dedicated to index funds and ETFs.

Financial Performance

Smallcase’s operational revenue escalated to Rs 67.4 crore in FY24, a remarkable rise from Rs 30.6 crore in FY23. The company successfully mitigated its losses by 74.4%, bringing them down to Rs 34 crore in the previous fiscal year due to reductions in advertising expenses and employee benefits.

Funding Landscape in Indian Wealthtech

Numerous Indian wealthtech startups, including Neo, Dezerv, Centricity, Stable Money, Fisdom, InvestorAi, and Wealthy, have collectively secured nearly $250 million in funding across 15 deals within the last 18 months.

Elev8 Venture Partners, which is supported by South Korea’s KB Investment, aims to focus on sectors such as B2B SaaS, enterprise tech, consumer tech, and fintech. This investment in Smallcase represents its third backing, following investments in identity verification platform IDfy and astrotech platform Astrotalk.