Ratan Tata and Tiger Global-backed Upstox is seeking both organic and inorganic expansion options and currently has financial reserves of over Rs 1,000 crore.
Ratan Tata-backed discount broker Upstox achieved breakeven in FY2022-23. According to co-founder and CEO Rajiv Kumar, the company wants to increase its customer base by a factor of 10 to reach 10 crore in the next five to six years.
The corporation is supported by Tiger Global, a powerful investor in addition to Ratan Tata.
According to Kumar, Upstox’s operating revenue increased by 40% to Rs 1,000 crore. In the final quarter of FY2022-23, it also earned a positive net cash flow of almost Rs 130 crore. The company is searching for both organic and inorganic growth prospects with cash reserves of over Rs 1,000 crore at this time.
Kumar reaffirmed the firm’s dedication to promoting growth that is both profitable and sustainable. Upstox was founded in 2009 and currently has 1.1 crore clients nationwide, with 85% of them living in Tier II and III cities, with the largest customer bases in Mumbai, Delhi, Pune, Thane, Bangalore, Jaipur, Hyderabad, Aurangabad, Nashik, and Nagpur. Additionally, 70% of investors are new to the market.
However, the business currently has no intentions of funding. In January 2022, it had secured $100 million in Series C capital.
According to Kumar, the company’s financial stability would help it strengthen its market position through both organic and inorganic means and realize its goal of having 100 million consumers in the next five to six years.
Upstox, which competes with rivals like Zerodha, claimed that less than 5% of Indians invest in stocks and that the market’s overall potential is still largely unrealized. As a result, the company has paused its US expansion in the past 18 months and is now concentrating on its operations in India.
