Serial entrepreneur Pravin Jadhav’s newest startup Raise Financial Services on Tuesday said that it has acquired Mumbai-based stock broker Moneylicious Securities.
As a part of the acquisition, Raise will be absorbing Moneylicious’s 15 member team, while appointing its founder and chief executive Jayprakash Gupta as co-founder.
Moneylicious Securities will now operate as a fully-owned subsidiary of Raise, post the acquisition.
Raise is expected to launch a new investment app for regular everyday stock traders and long term investors, through the Moneylicious acquisition.
“More than 90% of the everyday trading activity is performed by traditional stock brokers, and there isn’t any technology solution focused on improving their experience. Through the Moneylicious acquisition, we will be launching a new app to focus on this target segment and help them get a better real-time sense of their trading activity performed on an everyday basis,” told Jadhav, founder and chief executive of Raise.
“We don’t want to focus on first time investors, since that market has been approached by several existing players,” added Jadhav.
Jadhav also said that Raise’s first product targeted towards stockbrokers will be launched in the next 8-12 weeks.
In his previous stint, Jadhav launched Paytm Money, the Noida-based financial services company’s wealth management division. He resigned from the firm in 2020 and started Raise this year.
Founded in 2012, Moneylicious Securities is a registered stock broker and also a member of all Stock Exchanges (BSE, NSE, MCX) for all segments including futures and options (F&O), commodities and currency and a depository participant with Central Depository Services (CDSL).
The acquisition has received all required approvals from capital markets regulator Securities and Exchange Board of India (SEBI), all stock exchanges (BSE, NSE, and MCX) and CDSL.
“Moneylicious held a vision to create a superior investing and trading experience for its clients and growing base of financially aware customers. There exists a large opportunity to offer better and differential experience in Financial Services to users from Metros, Tier-I & Tier-II cities who are financially aware and literate. It’s a great synergy with Raise, and I am thrilled to join Raise Financial Services as its co-founder alongside Pravin in this journey,” said Gupta, co-founder of Raise.
Raise also has plans to introduce multiple products across financing, insurance, investments, payments, and wealth management in coming fiscals.
Earlier in February, this year, Raise Financial Services also raised a seed round from Mirae Asset Venture Investments, as well as from a group of prominent unicorn founders and chief executives.
Participating angels included – CRED founder Kunal Shah; Flipkart chief executive Kalyan Krishnamoorthy; PhonePe founders Sameer Nigam and Rahul Chari; Udaan founders Amod Malviya and Sujeet Kumar, among others.
Source: Mint