Zerodha invests Rs 2.5 crore in options trading startup Sensibull

Sensibull will use the new funds to hire engineering talent as it works on strengthening its technology platform.

Bengaluru-based online stock trading startup Zerodha on Thursday announced that it had made an investment of Rs 2.5 crore in options trading startup Sensibull. The startup is being incubated under Rainmatter, a fintech fund and incubator by Zerodha.

Sensibull was founded with the vision of making the small trader profitable in markets. In an official statement, the startup said that an astonishing number of the people make losses in the market and Sensibull wanted to put an end to that. The early stage startup aims to simplify option trading for all by cutting through all the math and technicals and creating an alternative avenue for wealth management for the high-income crowd.

Speaking on the investment, Nithin Kamath, Founder and CEO of Zerodha and Rainmatter, said,

“Options trading today contributes to over 70 percent of all trading on NSE and will soon be available on all commodities as well. Most people trading options think of it is as a lottery, and hence end up losing money fast. Sensibull is attempting to be the platform that can help the retail trader in his quest to profitability while trading options.”

The new funds will be used to hire engineering talent as the startup works on strengthening its technology platform.

Sensibull was founded by Abid Hassan, along with Abhimanyu, Balajee, and Sudeep in August 2017. The startup is IIM-Ahmedabad alumnus Abid Hassan’s second attempt. He started Sensibull in 2013, but hit a regulatory roadblock. The founders soon realised that despite all the technological developments, there weren’t any good options platforms in the country and people were using the same tools for equities and options.

Abid Hassan, Founder, Sensibull, said,

"One of the biggest lessons you learn when you trade big size is that most of the times, the best strategy is to sit out and wait for a good trade. Small traders don't get this as they are always looking for the next big thing. As a platform, our inherent philosophy is to get people to reduce their trading and take very good bets. So yeah, we are a platform that will actually ask users to not trade.”

Sensibull said it will screen clients view, warn them of events, show them the best strategies, give them insights, track them, and help them with the exit. They will stay with the client throughout the trade.

In the past, Rainmatter has invested in other financial technology startups, including algo-trading startup Streak. Earlier this month, Balance, one of the Rainmater-incubated smart savings startup, got acquired by Paytm for an undisclosed amount.