Nivesh.com, an innovative mass market mutual funds investment platform targeting mainly the highly potential markets in the tier 2 and 3 cities of India, has raised angel funding from a group of successful entrepreneur-turned investors.
The investors in this round include Rahul Gupta, CEO of Right Global Infosolutions and former president at private equity firm Sonoma Management Partners; Sandeep Shroff, CEO of Silicon Valley-based MyStartUpCFO.com and former head of investor relations at Infosys, and P V Sahad, founder and former CEO of The VCCircle Network.
"The amount raised will be used for network expansion, reaching out to more customers, and for improving the investment experience," said Anurag Garg, Founder and Chief Executive, Providential Advisory Services Pvt Ltd, the Noida, Uttar Pradesh-based company which owns Nivesh.com.
This emerging paperless investment platform will adopt an omni channel approach for on boarding investors while simplifying the scheme selection process by categorizing funds as per broad investment objectives, providing a healthy mix of equity and debt schemes.
Mutual funds are at an inflection point with the ongoing fundamental shift of investments from physical to financial assets, the emergence of game-changing Aadhar-based E-KYC, the government push for digitalisation and financial inclusion, and new payment innovations.
The company is primarily targeting the underpenetrated markets of second and third tier cities and towns and is betting on the growing awareness among middle class Indians of the need for participating in equity markets for wealth creation and goal-based financial planning.
"The mutual fund industry grew 17 times in the last 15 years. However, top five states accounting for only 23 percent of population and 35% of GDP have contributed 71% of the total mutual fund AUM while the rest of the country with 77% population accounted only for 29% of the AUM. There is a huge gap and therefore our mission is to take mutual funds as an investment product to every nook and corner of the country," Garg said.
This omni channel platform was founded in August last year by Anurag Garg, who had earlier set up mutualfundsindia.com, which was later acquired by rating agency ICRA. Sridhar Srinivasan, former India head at global investment research platform Visible Alpha, joined later as Co-founder.
The new investors have a proven track record of founding and building companies. An entrepreneur, Rahul Gupta runs a software services company out of Chandigarh and Bangalore, and has invested in 8 start-ups, besides being an independent director in many listed and unlisted companies. P V Sahad, who founded VCCircle in 2005, sold the company to global media and information giant News Corp in 2015, and has mentored several entrepreneurs. Shroff, who has been helping start-up companies, runs a firm that provides outsourced CFO services based out of Silicon Valley, and had earlier co-founded Gridstone Research.
In line with its future plans to tap the mass retail mutual funds market, the platform will be available in local languages, beginning with Hindi in a few months. Nivesh.com intends to work on creating investor awareness and has conducted six extremely well received programmes in many smaller cities in association with asset management companies. The platform will also be available through local distributor partners, who will assist their clients in on boarding and transactions.
Nivesh.com is a mass market mutual funds investment platform. Nivesh.com is a paperless experience for the investors. The platform simplifies the process by categorizing funds as per broad investment objectives, and further curating schemes to provide a shortlist. The aim is to take away the complexity while ensuring objective investment process. After initial account creation, investors can transact in mutual funds in few simple steps. Post transaction, the platform helps in tracking the portfolio performance with timely alerts and notifications.
Local business partners are key elements in our strategy. They assist investors in the on boarding process and make them comfortable in using the platform for transactions and tracking performance.
Nivesh.com is owned by Providential Advisory Services Private Limited. The Company was incorporated on 1st August 2016 and commenced operations on pilot basis in January 2017. We are now live and scaling up our operations in a steady manner.