Mass market mutual funds investment platform, Nivesh.com, has raised angel funding from a group of HNIs (High Net Worth Individuals). The HNIs 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.
Founded in 2016 by Anurag Garg and incorporated on 1st August 2016, Nivesh.com is owned by Providential Advisory Services Private Limited. The company commenced its operations on the pilot basis in January 2017. At present, the company is live and claims to be scaling up their operations in a steady manner.
The company is a mass market mutual funds investment platform and assures 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 of the company is to take away the complexity while ensuring objective investment process.
Commenting on the company, Anurag Garg, Founder, and CEO at Nivesh.com, said:
The mutual fund industry grew 17 times in the last 15 years. However, top five states accounting for only 23 percent of the 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 country
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 the company’s strategy. They assist investors in the onboarding process and make them comfortable in using the platform for transactions and tracking performance.
This emerging paperless investment platform is expected to adopt an omni channel approach for onboarding 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 and with the introduction of 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.
Also, 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, Founder of VCCircle, 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.
Along with their other future plans to tap the mass retail mutual funds market, the company is planning to make the platform available in local languages.They are planning to start with Hindi and then will cover the other language. This may be available to the customers in new few months.
The intention of the company is to work on creating investor awareness and it claims to have conducted six extremely well-received programmes in many smaller cities in association with asset management companies till now. The platform will also be available through local distributor partners, who will assist their clients in on boarding and transactions.
The amount raised are expected to be used for network expansion and to reach out to more customers. The company will also focus on improving the investment experience for the users.