Wealth Bucket Capital Investment, which owns fintech platform WealthBucket, has raised $3 million in a seed round from private equity firm NorthStar and some HNIs (high net worth individuals).
The company will use the funds to increase its staff strength to 100 from the current 45 and expand its operations. Along with this, the funds will be used to get technology to simplify the know your customer (KYC) and investment process. The company also plans to extend the platform to handle the investment portfolio of an entire family through one account.
The platform, which currently offers online mutual fund investment services, plans to foray into the stock market and insurance segments. It plans to leverage its own agent network to distribute products to clients in tier-2 and tier-3 cities.
“Our aim is to invest this money to build our technology and operational team. We will focus on the under-served segment of the market. That includes the people who are not investing because of complicated investment processes and lack of knowledge,” said Pulkit Jain, co-founder of WealthBucket.
Founded in 2018 by Himanshu and Pulkit Jain, WealthBucket is a mutual fund aggregator providing investment options across segments including SIP (systematic investment plan), equity-linked saving schemes and lump-sum investment.
The fintech company claims to have 3,00,000 visitors, most of whom are investing for the first time, and processed around 50,000 transactions till date, generating investments worth Rs 150 crore.
“Our idea is to provide a model where the investor can choose from a multitude of investment options. Our experts create low-commission portfolios for retail investors and strive to make investment a hassle-free experience,” said Himanshu Jain, co-founder of WealthBucket.
WealthBucket competes with other fintech platforms such as Groww, OroWealth and Scripbox.
In January 2019, online investment platform Scripbox raised $21.7 million from venture capital firm Accel and angel platform Omidyar Network. Post-funding valuation of Scripbox stood at $110 million.
In 2018, Groww raised $1.6 million in a funding round from Insignia Venture Partners, Lightbridge Partners and Kairos, along with returning investors Curefit founders Mukesh Bansal and Ankit Nagori.
Wealth management app CashRich raised $1 million in angel funding from three foreign individual investors.