Bengaluru-based Smallcase, a wealth tech startup, has successfully secured Series D funding from Elev8 Venture Partners, reinforcing its investment product offerings and strengthening its model portfolios to attract more retail investors.

The round also saw State Street Global Advisors, Niveshaay AIF, Faering Capital, and Arkam Ventures participation. With this latest investment, Smallcase aims to expand its investment product offerings across asset classes and strengthen its relationship with retail investors and financial ecosystem partners.

“The new funding will enable the company to integrate asset classes like mutual funds and fixed income while strengthening its technology and data analytics capabilities to empower retail investors further,” the firm said in a statement.

Founded in 2016 by Vasanth Kamath, Anugrah Shrivastava, and Rohan Gupta, Smallcase simplifies stock investing for retail investors through professionally managed model portfolios.

The platform offers access to stocks, exchange-traded funds (ETFs), Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs). Additionally, Smallcase provides technology solutions to over 250 financial institutions, including research firms, advisors, wealth managers, and brokerages.

Smallcase, Financial Growth and Market Position

Smallcase has seen impressive revenue growth, with FY24 operational revenue surging to INR 67.4 crore, a sharp increase from INR 30.6 crore in FY23. The company also significantly reduced its losses by 74.4 percent, bringing them down to INR 34 crore. The startup has now raised $120 million in total funding, with its Series C round securing $40 million in 2021.

Smallcase recently partnered with Zerodha to launch an asset management company (AMC) focused on index funds and ETFs. The firm also holds a minority stake in Zerodha Fund House’s AMC, further solidifying its presence in the passive investment space. With the latest funding, Smallcase aims to expand into mutual funds and fixed-income instruments, offering investors more diversified options.

According to data, Indian wealth tech startups such as Neo, Dezerv, Centricity, Stable Money, Fisdom, InvestorAi, and Wealthy have collectively raised $250 million across 15 deals in the past 18 months. The growing demand for innovative investment platforms underscores the rapid transformation of India’s financial technology landscape.

“The opportunity to help millions of Indians design better financial futures is a huge responsibility, and we will continue to deliver on it with honesty and integrity along with our partners,” Smallcase’s co-founder and CEO Vasanth Kamath said.

Elev8 Venture Partners’ Strategic Move

Elev8 Venture Partners, backed by South Korea’s KB Investment, focuses on high-growth Indian startups across B2B SaaS, Enterprise Tech, Consumer Tech, and FinTech. This is Elev8’s third investment, following its funding of identity verification platform IDfy and astrotech platform Astrotalk.

Navin Honagudi, Managing Director and Founding General Partner at Elev8, praised Smallcase’s ability to innovate and scale in a competitive market.

“India’s retail investing landscape is undergoing a seismic shift, and Smallcase has been at the forefront of this transformation. Their ability to build trust and expand rapidly makes them a standout player. We believe in backing companies that are not just growing fast but are also shaping industries. Smallcase fits that vision perfectly, and we are excited to support them as they reach millions more investors,” he said.

With a user base exceeding 10 million investors, Smallcase continues to lead in the model portfolio segment. By expanding into new asset classes and enhancing its tech-driven solutions, the company is poised for significant growth. Investors and industry experts recognize Smallcase as a major player in India’s evolving wealth tech ecosystem.

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