Wealthtech platform Smallcase has secured $50 million in its Series D funding round, further solidifying its position in India’s rapidly evolving investment technology space. The round was led by Elev8 Ventures and included high-profile participants like State Street Global Advisors, Faering Capital, Rummytime Technologies, and Niveshaay AIF. The funding mix comprised both primary and secondary transactions, with a focus on strengthening the platform’s innovation, partnerships, and user experience.
Primary Capital Breakdown: Rs 247 Cr Raised
Regulatory filings accessed by Entrackr reveal that Smallcase raised Rs 247 crore (~$29 million) in primary capital by issuing:
• 3,890 Series D1
• 1,644 Series D2
…at Rs 4,44,560 per share.
Key contributions include:
• State Street Global Advisors: Rs 81.7 Cr
• Elev8 Capital: Rs 34.5 Cr
• Rummytime Technologies: Rs 24.5 Cr
• Unitary Fund: Rs 20 Cr
Additional capital came from Akram Ventures, Faering Capital, Niveshaay Sambhav, and over 20 others.
Valuation Clocks $285–290 Million
Following the Series D allotment, the company is estimated to be valued at $285–290 million, showcasing investor confidence in Smallcase’s long-term play in the retail investing space.
Interestingly, Series D shares carry a 1:10 conversion ratio, meaning each preferred share converts into 10 equity shares in the future—likely structured for future listing or strategic exits.
Secondary Round: Early Investors Exit Quietly
While the secondary transaction figures were not disclosed in regulatory filings, reports suggest that Peak XV, WEH Ventures, and some early backers are offloading part of their stakes—pointing to partial exits or rebalancing ahead of the next growth phase.
Cap Table Snapshot (Pre-Secondary Adjustments)
As per data from TheKredible:
• Peak XV Partners: 16.2% (largest external stakeholder)
• Faering Capital: 9.67%
• Blume Ventures: 7.67%
These percentages will shift post-secondary disclosures.
Strong Financial Signals
In FY24, Smallcase clocked Rs 67.4 crore in revenue, up 2.2X YoY. Even more impressively, net losses shrank by 74% to Rs 34 crore. With a leaner burn and scalable transaction-led revenue model, the company appears better positioned for profitability and a potential IPO over the next 2–3 years.
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Why It Matters
Smallcase’s journey reflects the maturity of India’s wealthtech landscape, where platforms are not only attracting global capital but also evolving toward sustainable unit economics. With a robust investor base and strategic capital in hand, Smallcase is expected to expand its ecosystem, possibly eyeing deeper integrations with brokerages and new asset classes.
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