Private equity and angel investors are chasing online MF distribution portals
Bangalore based robo advisory firm Scripbox has raised Rs.16 crore from venture capital firm Accel Partners and a clutch of angel investors.
In a press release, Sanjiv Singhal, CEO, Scripbox said, “This fund will help us expand our operation so even more people can benefit from our services.”
Scripbox claims that it one of the top 100 MF distributors (by net inflows) in FY 2014-15
Accel partners has been investing in Scripbox from its seed funding stage while angel investors like Deep Kalra (MakeMyTrip), Rajesh Magow (MakeMyTrip), Mohit Gupta (MakeMy Trip), Shamik Sharma (Myntra) and Subba Rao Telidevara (ex Actis Partner) have extended their support for the current series funding.
Robo advisors use algorithms and model portfolio to construct client portfolio. Investors have to fill up their details and goals based on which these advisors recommend a plan or a list of schemes to invest in.
In India, Scripbox and Arthyantra claim to follow Robo advisory model. Started in January 2012, Bangalore based firm scripbox uses indexing approach to recommend mutual funds. It has developed a proprietary model called IBIS (Index Based Investment Solutions) to recommend mutual funds.
Two months back, Chennai based online distribution firm FundsIndia had raised Rs.70 crore from Faering Capital, Foundation Capital and Inventus Capital.
