[Funding alert] Fintech startup smallcase raises $14M in Series B round led by DSP Group

Bengaluru-based capital markets infrastructure startup Smallcase has raised $14 million in Series B financing round led by DSP Group along with existing investors Sequoia Capital India, Blume Ventures, Beenext, and WEH Ventures.

The round also saw participation from Arkam Ventures (previously Unitary Helion); Utpal Sheth (CEO at Rare Enterprises, owned by Rakesh Jhunjhunwala); and Kunal Shah (Founder, CRED). The funding will be used to continue enhancing smallcases' infrastructure stack, add more investment products and partners to the platform, and expand its technology and product teams.

Founded in 2015 by IIT Kharagpur alumni - Rohan Gupta (ex-Goldman Sachs), Anugrah Shrivastava (ex-Nomura), and Vasanth Kamath, smallcase works with capital market participants (including brokerages, advisors and digital wealth platforms) to offer simple and transparent investment products called smallcases.

Smallcases are model portfolios of stocks and ETFs that are created and managed by registered individuals and entities.

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“Our mission is to develop simple and transparent investment products for the Indian retail investor, and in the last few years, we have built a very unique brand and have some of India’s most respected financial institutions as strategic partners to further this goal,” said Vasanth Kamath, Founder and CEO, smallcase.

The platform is integrated with Indian brokers including Zerodha, HDFC Securities, Kotak Securities, 5paisa, AxisDirect to offer stock and ETF smallcases to their client base. In the last three years, the startup said the number of active brokerage accounts has grown by 2.5x and smallcases have emerged as the primary product offering from India’s leading brokerages for these new accounts. The smallcase investor base has grown by 8x in the last two years to 1.5 million and over Rs 5,000 crore have been transacted in smallcases, it added.

“With complete transparency and control, an investor can build a long-term portfolio with smallcases. We will continue to develop and enable more innovative and relevant investment products for individual investors in India,” said Anugrah Shrivastava, Founder and CIO, smallcase.

"In the next 18 months, we will be growing the smallcase ecosystem with more products, manufacturers, and distribution partners like finance apps and digital wealth platforms,” added Kamath.

According to Harshjit Sethi, Principal, Sequoia Capital India, “smallcase is targeting over 40 million direct equity investors in India with its innovative, easy to understand, transparent and digital first products.”