Chennai based Wealth India Financial Services which runs online investment platform, FundsIndia.com has raised Rs. 70 crore in the third round of funding from Faering Capital and its existing investors, Foundation Capital and Inventus Capital.
FundsIndia will use the fresh capital to widen the reach of its online platform and enhance its service offerings.
With the fresh capital infusion, Sameer Shroff and Aditya Parekh of Faering Capital will join the company’s board. Ashu Garg from Foundation Capital and Parag Dhol from Inventus Capital will continue on the board, along with founders, said a press release issued by FundsIndia.
In its first round funding in 2010, the company had raised Rs. 3 crore from Inventus Capital. In the second round in April 2012, FundsIndia raised Rs. 20 crore from Foundation Capital and Inventus Capital.
“Over the last six years, we have demonstrated that technology enabled advisory services (robo-advisory) using online platforms is the best way to deliver good financial advice. The convenience of online transactions makes FundsIndia a liberating and empowering experience for investors. This round of funding will further strengthen our efforts towards maximizing our reach without diluting quality,” said C. R. Chandrasekar, CEO, FundsIndia.
FundsIndia runs two verticals – a B2C platform which reaches out to investors directly and B2B platform which operates on a sub-broker model. C Chandrasekar said that around 800 IFAs are currently using FundsIndia platform to service their clients. The company operates on a commission sharing model with IFAs. IFAs having AUA of up to Rs. 10 crore on the platform get 65% of commission received from AMCs while those who have AUA of more than Rs. 10 crore get 75% of the commission share.
The company manages total assets under advisory of nearly Rs. 1,200 crore. Around Rs. 350 crore is under its B2B sub-broker vertical while the remaining is under its B2C vertical.
The platform provides a host of products and services like mutual funds, insurance, corporate deposits, NCDs, bonds, direct equity, e-insurance repository and personal loans comparison tools.
