Bengaluru-based online financial planning and investment platform Kuvera has raised $4.5 million (Rs 31.24 crore) in Series A funding from Eight Roads, the proprietary investment arm of Fidelity International Ltd.
In a statement, the company said it will use the first round of institutional funding to expand its product portfolio as well as build the team.
Prior to this, in March 2018, Kuvera had raised $250,000 (Rs 1.6 crore then) in its second round of angel investment.
Eight Roads said the investment was made by its new Fintech Strategic Investments team, set up eight months ago. This is the team's first India investment. The team previously backed Moneybox, a savings and investment platform in the UK.
The team is headed by Alokik Advani, who will join Kuvera's board.
Kuvera, operated by Arevuk Advisory Services Pvt. Ltd, was founded in 2016 by Gaurav Rastogi, Neelabh Sanyal and Mayank Sharma.
The startup allows investors to put money in nearly 37 mutual funds products. It allows users to invest in direct mutual fund plans, which offer higher returns than regular plans by saving on third-party commissions. It enables users to switch from regular mutual funds to direct mutual funds, lowering the cost of investing.
The company claims that it manages more than Rs 3,000 crore in mutual fund investments and that it has served more than 1,00,000 users.
Recent deals in online investment platforms:
- January 2019: Groww, an online platform which sells mutual funds, raised $6.2 million (Rs 44 crore then) in a Series A round led by Sequoia Capital India.
- In the same month, Scripbox Advisors Pvt. Ltd, which operates an eponymous online investment platform, raised $21.7 million (around Rs 151.26 crore then) in a fresh funding round from new and existing investors.
- November 2018: Wealth management app CashRich, owned by Thane-based CR Fintech Pvt. Ltd, raised $1 million (Rs 7 crore) in angel funding from three UK-based individuals.