Inside India’s Stock Trading Apps Revolution | India Digest Volume 71

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Never before has there been such a frenzy to invest in stocks and alternative assets, including crypto in India, as the country is now witnessing, in part thanks to the emergence of a new generation of young people. investors. In a recent interview with KrASIABrendan Rogers, co-founder of India-centric, Gen Z-centric micro-fund 2am VC, said young people’s desire to invest is at an all-time high in India as well as globally.

“The world is changing, young people want autonomy for their time and their income. They want to own what they do, ”he said.

The enthusiasm of millions of Indian millennials and Gen Z to put money aside for future wealth creation has led to the rise of two crypto unicorns and a deluge of funding for a multitude of trading apps. fast-growing stocks this year.

For this week’s big read, we took a look at the booming stock trading apps and what is driving their growth in India.

The big read

Indian stock trading apps flourish amid unprecedented IPO scene

As India’s stock indexes – from Sensex to Nifty 50 – have peaked one after another since the start of the year and several top startups request an IPO in a buoyant market, more and more Novice retail investors are attracted to investing in stocks.

Consider this: BSE Sensex, the Bombay Stock Exchange’s benchmark index that tracks 30 large, actively traded companies, has jumped 134% in 18 months, with the latest rally of 10,000 points in just eight months. Meanwhile, following Zomato’s successful debut on local stock exchanges in July, a flurry of startups, including Paytm, ixigo, Nykaa and PolicyBazaar, have said they will go public this year.

It is therefore not surprising that individual investors are charmed by the bullish sentiments in the market. And since most of these investors have little or no experience dealing with a capital market, a large number of startups take it upon themselves to launch services and platforms to educate the new generation of Indian individual investors on basics of stock trading.

Startups like Zerodha, Upstox, Groww, Fundfolio, Stockal, and StockGro as well as established players like Paytm are now busy courting these new-age investors. While more than 150 million people use digital payment apps every month, only around 20 million of them invest in stocks or other investment vehicles. This means huge room for growth for these platforms. VCs have already figured this out, which is why India is seeing an increase in funding for stock trading applications.

The weekly buzz

1. The CarDekho automotive platform has become a unicorn with $ 250 million in pre-IPOs. It is the 33rd company to grow to over $ 1 billion in 2021. CarDekho plans to use the new funds to expand used car transactions and auto finance and insurance, as well as to expand internationally.

2. The SME-focused neobank Open raised US $ 100 million under the leadership of Temasek. Google and SBI Investment also participated in the round. The Tiger Global-backed startup will use fresh funds to expand its customer base to five million out of the current million SMEs and penetrate overseas markets including Southeast Asia, Europe and the United States. next year.

3. After Flipkart and YouTube, Indian food delivery giant Swiggy plans to venture into the social commerce space. Over the next two months, the Bengaluru-based unicorn will launch bundled buy and resale features under Swiggy Bazaar, which will initially focus on groceries, consumer goods, and farm-fresh produce.

4. The Home Services Market Urban Company has been criticized by women workers for unfair labor practices. More than a hundred women in the home salon and spa industry protested the high commission fees charged by the startup, in addition to low incomes and poor safe working conditions. The development has once again highlighted the issue of the working conditions of concert workers in Indian startups.

Best deals this week

In partnership with Tracxn

The spoiler

Tune in next week to learn about the top trends in India’s evolving edtech space.


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