HDFC Bank has invested an undisclosed amount in smallcase Technologies, and bought a minority stake, as part of a recent Series B fund-raise of $14 million by the Bengaluru-based fintech startup.
Existing investors such as DSP Group, Sequoia Capital India, Blume Ventures also participated in the round.
The five-year old startup operates in the capital markets infrastructure space and works with businesses to help individuals invest in simple and transparent products called smallcases.
Created and managed by licensed research providers and advisors, smallcases are model portfolios of stocks and ETFs. With growing interest and participation in equity markets, smallcases have seen a sharp increase in its investor base and amounts transacted over the last six months with its ecosystem approach.
“Today, we work very closely with India’s most respected financial institutions & partnering with HDFC Bank as our shareholder will help us accelerate towards building world-class infrastructure and platforms for the Indian markets and grow this ecosystem.” said Vasanth Kamath, founder and CEO, smallcase.
HDFC Bank, over the past few years, has been working closely with the startup and fintech ecosystem in India in various ways, said Smita Bhagat, country head, government & institutional business, e-commerce & startups, HDFC Bank.
“This ecosystem, we believe, will play an important role in the economic progress of the country. With a unique model, smallcase is well positioned to create a niche in the capital markets in India and also help expand the market,” said Bhagat.
The smallcases platform is integrated with brokerage platforms including HDFC Securities, a subsidiary of HDFC Bank, to facilitate seamless transactions. Retail brokerage partners use smallcase as a primary product offering to help their clients build a diversified investment portfolio.
Last week, HDFC Bank said the Reserve Bank of India has advised it to temporarily stop all digital launches and sourcing new credit card customers. This came after the bank suffered its third outage in the span of two years.
On Monday, rating agency Moody’s said HDFC Bank’s multiple digital outages are credit negative as the lender increasingly relies on digital channels to source and service customers, and such recurring incidents could lead to moderation in revenue and flight of customers to other banks.
This article was first published on livemint.com