Wealthtech startup Wealthy.in raises $7.5M to penetrate deeper into the Indian market

Bengaluru-based Wealthy.in, a wealth management platform, today announced it has raised $7.5 million in a Series A funding round led by Alpha Wave Incubation (AWI) and Savrola Group.

The round was also participated by existing investors, including Venture Highway, Good Capital, and Emphasis Ventures. AWI is backed by ADQ’s venture platform, and managed by Alpha Wave Global (formerly known as Falcon Edge Capital).

Founded in 2015 by Aditya Agarwal and Prashant Gupta, Wealthy.in, through its Wealth Management platform, enables professionals to grow wealth for investors. The startup said around $450 million worth of assets are being managed on its platform.

Wealthy.in, which is owned and operated by Buildwealth Technologies Pvt. Ltd., will use the raised funds to penetrate deeper into the Indian market and expand in international markets like the Middle East, the statement said.

“For a long time, we have been known as a country of great savers but not great investors. However, we are seeing signs of a structural shift in the market, where investors want to manage their life’s savings through a diversified pool of products. Through our tech-enabled platform and holistic offering, we are well-positioned to lead this market shift,” said Aditya Agarwal.

The startup in a statement said Of India’s total $15 trillion household savings, $9 trillion are owned by around 55 million affluent households. But institutional wealth management channels cater only to the top 300,000 households, leaving the remaining 99% with a need for professional wealth management services.

Further, the Penetration of wealth management products in India is still in single-digits (8% of total wealth) as compared to developed markets like the US (72% of total wealth) and China (44% of total wealth). A shifting investing pattern coupled with a lack of quality service providers makes it a $20 billion net revenue opportunity, it said.

A lot of apps exist to buy financial products. But for significant investment decisions, investors still seek the assistance of independent wealth management professionals who can inform and handhold them while providing a breadth of financial products.

The startup said it has more than 1,500 such professionals across the country who are using its suite of web, mobile apps, and 150+ financial products to focus on client needs and build their portfolios.

Speaking on the development, Prashant Gupta said: "We are changing the status quo with an ethos that believes in empowering these professionals rather than replacing them. With this fund-raise, we will be able to double down on our investments in technology and penetrate deeper into the Indian market."

Wealthy.in has grown 15x since the last fundraise," Rohan Malhotra, Managing Partner at Good Capital, said. "It is a unique platform which ensures that clients get unbiased recommendations and a wide choice of products through wealth professionals they trust," Rohan adds.

The wealth tech startup offers technology free of cost and earns only when a wealth management professional suggests a financial product from its marketplace. This fair business model frees them up to uncompromisingly focus on building and managing client relationships, it adds.

"The combination of a highly diversified pool of investment opportunities and human assistance to cater to investors' needs is a significant driver of increasing penetration in the wealth management space. According to our research, the element of human assistance is a globally proven model which catalyzes healthy investment returns while deploying meaningful capital at scale. We were also very impressed with the fact that Wealthy.in is able to demonstrate industry-leading monetization metrics, unit economics, and retention rates,” said Anirudh Singh, Managing Director at Alpha Wave Incubation.

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