Zerodha-backed smallcase sees 80% topline growth in FY24

In FY22, it had reported a revenue of Rs 24.8 crore, compared to a revenue of Rs 11 crore in the year before that.

Investment platform smallcase expects to see its sales surge by around 80% in FY24 from a topline of Rs 42 crore in the previous financial year, its founder and CEO Vasanth Kamath told Fe. The platform allows users to invest in a basket of stocks and ETFs curated by registered advisors and based on a theme or an idea.

“We’ve crossed 10 million in total users on the platform in 2023, which was a 30% growth year-on-year. Total amount invested or transacted on the platform has crossed Rs 65,000 crore, up by 50% on year. Even the inflows grew by 50% for us. It’s been a good year for the market, so the assets in smallcases also doubled in 2023 for us,” Kamath said.

smallcase currently has about 150 registered investment advisors or “creators” on the platform, who have curated investment baskets such as “Top 100 Stocks” or “All Weather Investing” or “Green Energy”, among others. Recently, smallcase launched an asset management company in a joint venture with stock-trading major Zerodha that is focussed on building low-cost passive mutual fund products.

Zerodha Fund House launched its first fund in November and now has three funds, with its fourth fund in its NFO period. So far it has crossed Rs 500 crore in asset under management, with over 100,000 investors, Kamath said.

“I think we want to get to a basket of 15-20 products which can form these building blocks and once we get there is when we’ll figure out how to get to the right user segment,” he added.

smallcase was founded in July 2016 by IIT graduates Vasanth Kamath, Anugrah Shrivastava, and Rohan Gupta to provide new investors with low-cost and transparent investment products. Its key investors include Sequoia Capital, Blume Ventures, HDFC Bank, Amazon, and DSP.

In FY22, it had reported a revenue of Rs 24.8 crore, compared to a revenue of Rs 11 crore in the year before that. Losses came at Rs 76.2 crore in FY23, compared to the Rs 28.3 crore in FY22, according to its RoC filings sourced from Private Circle.

For this year, the company plans to expand to mutual funds, fixed income instruments and retirement products. “Recently, we’ve been getting requests for adding more asset classes, because today we only do stocks, ETFs, REITs, which is just one part of the average user’s portfolio. They also invest into mutual funds, fixed income instruments, and other products,” Kamath noted.