Mumbai-based stockbroking firm Upstox recently bought back 5% of its shares from Ratan Tata, delivering him an astonishing 23,000% return on his initial investment. While this sale marks a partial exit, Tata still holds 95% of his original stake in the fast-growing company.
Ratan Tata's association with Upstox dates back to 2016, when he acquired a 1.33% stake in the then-budding fintech startup. Following an equity round in 2022, his holding was reduced to 0.9%, according to data from Tracxn. The recent buyback, carried out at a valuation of $3.5 billion, mirrors the company's valuation from its 2022 funding round.
Kavitha Subramanian, one of Upstox’s co-founders, expressed deep appreciation for Tata’s involvement. She remarked, “We are particularly honoured that Mr. Tata, a respected and iconic figure in India, has been such a key part of our journey. His early belief in our vision was a huge vote of confidence, and his challenge to us was both simple and profound: ‘How can we offer the same top-quality wealth advice to the everyday Indian that wealthy individuals receive?’ This question has been at the heart of everything we do at Upstox.”
This question became the driving force behind Upstox Wealth, a platform aimed at making top-notch financial tools and advice accessible to every Indian, regardless of their financial background. Subramanian emphasized the platform’s mission to democratize wealth management, ensuring that individuals of all income levels have access to the same quality financial advice that traditionally catered only to the affluent.
Upstox has witnessed tremendous growth over the years. The company recorded a net profit of Rs 25 crore in FY23, with its gross revenue surpassing Rs 1,000 crore. Furthermore, Upstox currently boasts 2.7 million active clients, according to the National Stock Exchange (NSE), making it one of the fastest-growing stockbrokers in the Indian fintech space.
Despite selling a portion of his shares, Ratan Tata’s decision to retain most of his stake in Upstox is a clear sign of his unwavering confidence in the company’s future. Subramanian further commented, “His support pushes us to keep going, and we remain committed to our goal: to provide accessible, high-quality wealth management for every Indian. We won’t stop until everyone has access to the tools they need to build their financial future.”
The buyback not only highlights Upstox's impressive growth but also underlines its commitment to empowering everyday investors across India. As the company expands its services, it aims to continue bridging the gap between high-quality financial advice and accessibility for ordinary Indians. With Ratan Tata’s continued support, Upstox is set to become a major player in the wealth management and stockbroking sectors.
Upstox is a Mumbai-based fintech startup specializing in stockbroking and wealth management services. Founded in 2009 by Ravi Kumar, Kavitha Subramanian, and Shrini Viswanath, the company has grown rapidly, establishing itself as one of India’s top stockbroking platforms. Upstox offers a range of investment products, including stocks, mutual funds, commodities, and derivatives, with a focus on providing easy access to financial markets for retail investors.
The company aims to democratize financial tools, making them accessible to everyone, from seasoned investors to those just beginning their financial journey. With its innovative technology platform and competitive pricing structure, Upstox has attracted millions of clients and is especially popular among younger, tech-savvy investors.
The platform offers a seamless user experience through its mobile app and desktop services, enabling users to trade and manage their portfolios with ease.
In recent years, Upstox has also expanded into wealth management services, launching Upstox Wealth, a platform designed to offer top-quality financial advice to all Indians, regardless of their investment size. This initiative underscores the company’s commitment to financial inclusion, a core part of its mission.
Backed by investors such as Ratan Tata, Tiger Global, and Kalaari Capital, Upstox has achieved significant milestones, including reaching a $3.5 billion valuation in 2022. With over 2.7 million active clients and a strong financial performance, Upstox is poised to continue its rapid growth in India’s fintech landscape.