How many IFAs are using your platform?
Currently, around 800 IFAs are empanelled with us and 500 of them are active.
In the light of falling commissions and other regulatory changes, how are you trying to attract IFAs to your platform?
Some IFAs are at a stage where they have 100-120 clients. The only way they can scale up is by using an online platform. It can be our platform or any other platform. The advisor community has realized that they have to use technology to bring efficiency in their business. They are keen to join our platform because of two reasons, cost efficiency and superior client service. Clients want to access their portfolios online, especially on mobile phones. No one wants to fill up forms to invest. By cutting down paperwork and physical submission of forms to R&Ts they are able to save on cost.
How is your platform different from other platforms? What is your differentiating factor?
The first differentiating factor is that we are a multi-asset platform. We provide mutual funds, direct equity, corporate FDs, gold, NCDs and e-insurance. Thus, IFAs and their clients get the entire bouquet of products on a single platform.
The second differentiating factor is that no platform comes close to us in terms of user interface, convenience and service. We also have a mobile app for our clients. Lastly, we provide research support to IFAs.
How much assets do you have in your B2C and B2B vertical?
We have a total of Rs. 1,200 crore AUM of which Rs. 350 crore is under B2B vertical and the remaining in B2C.
Is it possible for IFAs to shift their existing assets to your platform?
Yes, it is possible to shift existing AUM to our platform. Till 2014, the new distributor was not entitled to get trail commission if the assets were transferred to his/her ARN. In January 2014, AMFI revised the rules which allowed online platforms like us to get trail commission if assets were transferred from a distributor to an online platform. Thus, IFAs who shift their assets to our platform will get trail commission from us on their past AUM.
Can IFAs shift their assets from your platform to their family member or other distributor later?
In the offline model IFAs have to transfer assets from each AMC where they are empanelled. They can do mass transfer through our platform since they are dealing only with us. We have an agreement with IFAs which allows them to transfer their assets and clients to other ARN.
How have direct plans impacted you?
About 1.5% of our assets have moved to direct plans. So it has not impacted us much.
Are you considering offering direct plans to SEBI Registered Investment Advisors on your platform?
Currently, a few AMCs are sending feeds of direct plans to SEBI RIAs. We will offer only if the feeds come from R&Ts. AMCs may not be very quick in sending feeds and if the feeds are delayed investors will start complaining. Thus, we will provide direct plans to SEBI RIAs only if we have a standardized way of getting feeds.
How has been the progress of your company last fiscal?
The growth has been phenomenal which is why were able to raise money from investors. Around 200 IFAs joined our platform last year.
Where do you see the future growth of your company coming from, B2C or B2B platform?
More than 65% of our assets are in B2C platform. Our revenue from sub-broker channel is less because we have to share commissions with IFAs. The B2B platform will grow but not as much as B2C platform. The B2B model creates a lot of credibility for us in the market because IFAs give us a lot of feedback and that has helped us in creating a robust platform. Investors can’t give you the feedback which IFAs can give.
What is your focus now?
A lot of clients and IFAs are coming to us through word of mouth. Not many people know us. We are investing in building our brand now. We are building capabilities in mobile application because whatever you do will eventually come online. Clients are increasingly using mobile phones to access everything.
