Highlights
Smallcase Secures $50 Million in Series D Funding
Wealthtech platform Smallcase has successfully raised $50 million in its Series D funding round, guided by Elev8 Ventures, with contributions from State Street Global Advisors, Niveshaay AIF, Faering Capital, Rummytime Technologies, and several others. This funding involved a combination of primary and secondary transactions, although the specific details of each were not disclosed by the company.
Startup Superb has scrutinised regulatory filings to reveal insights into the breakdown of primary funding, shareholding structure, and the current valuation of Smallcase.
Details of the Funding Round
The board at Smallcase has approved a special resolution to issue 3,890 Series D1 and 1,644 Series D2 compulsory convertible preferred shares at a price of Rs 4,44,560 each, aiming to raise Rs 247 crore or $29 million as primary capital, according to regulatory filings obtained from the Registrar of Companies.
In the primary funding round, State Street Global Advisors committed Rs 81.7 crore, while Elev8 Capital, Rummytime Technologies (Gaming), and Unitary Fund contributed Rs 34.5 crore, Rs 24.5 crore, and Rs 20 crore respectively. The remainder of the investment came from Akram Ventures, Faering Capital, Niveshaay Sambhav, and over 20 additional investors.
Secondary Funding Insights
The specifics of the secondary round were not disclosed in the company’s regulatory filings. However, media reports have indicated that Peak XV, WEH Ventures, and a few early investors aimed to liquidate their shares during this round.
It is noteworthy that the conversion ratio of Series D shares will be 1:10 as stipulated in their terms. According to estimates by Startup Superb, following the allotment, Smallcase’s valuation is expected to be around $285-290 million.
To date, Smallcase has raised over $120 million. Information from various startup data platforms indicates that Peak XV holds the largest external stake at 16.2%, with Fearing Capital and Blume Ventures owning 9.67% and 7.67% respectively. These percentages of shareholding are expected to slightly alter following the announcement of secondary transactions.
Financial Performance
Smallcase demonstrated a year-on-year revenue growth of 2.2%, reaching Rs 67.4 crore in the fiscal year that concluded in March 2024. The company offers a platform that enables brokers to carry out transactions in exchange-traded products, primarily earning revenue through transaction fees from brokers. Additionally, its losses have reduced significantly by 74%, totalling Rs 34 crore during the same fiscal period.