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Raise Financial Services, a fintech startup, has acquired stockbroking firm Moneylicious Securities for an undisclosed sum. This is Raise Financial Services' first acquisition following the completion of its seed round funding.
Post-acquisition, Moneylicious Securities operates as a 100% subsidiary of Raise Financial Services along with its customers, operations, business, and team members, the startup said in a release.
Raise's Founder and CEO, Pravin Jadhav, stated that the acquisition will provide the startup with all of the necessary memberships and licenses to launch an investment platform.
Moneylicious Securities was founded in 2012 and is registered with the Securities and Exchange Board of India (SEBI), as well as a member of the stock exchanges NSE, BSE, and MCX, as well as the Central Depository Services Limited (CDSL).
“Retail participation in stock markets has witnessed a significant increase in the past 18 months, this momentum and interest are irreversible. Most online investment platforms are currently focused on cash or equity segments and first-time investors. We believe there is a gap for existing users – super traders and long-term investors, even as 90% of volumes on stock exchanges in a day are from trading. Acquisition of Moneylicious Securities enables us to enter the investment & wealth management space with a tech-driven platform that is built for these customers,” Jadhav said.
“The way we envisage to build Raise Financial Services is to have it as a holding company with several lines of business as subsidiaries. Acquisition of Moneylicious is the first step in this direction,” Jadhav added.
Raise plans to launch its stock trading and investment product by the end of this year, and it is also in early talks to integrate insurance and money management services.
In February, Raise Financial received seed funding from Mirae Asset's early-stage fund as well as US-based Social Leverage, Blume Ventures Founders' Fund, and Multi-Act Equity. The company is now nearing the end of a larger Series A round of funding.
Raise Financial will concentrate on offering a money management platform to financially savvy customers with a diverse wealth portfolio. It will also enter the insurance distribution market, with a focus on urban India.
“With the acquisition of Moneylicious we have onboarded a strong 15-member team specializing across product and engineering in building investment service for over 6-7 years,” Jadhav said. “Furthermore, we will also get the requisite licenses held by Moneylicious for starting an investment business.”
Raise will continue to look for similar opportunities to acquire startups in finance verticals in order to ramp up its efforts in setting up teams in product, technology, and operations, he said.
“Retail participation in stock markets witnessed a significant increase in the past 18 months, this momentum and interest is irreversible. Acquisition of Moneylicious Securities enables us to enter the investment and wealth management space with a tech-driven platform that is built for super traders and long-term investors, " Jadhav added.
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