Source: Xeler8

WealthApp – a fintech startup – has raised over $440K in seed funding last year in December. The investors of this startup company include names like Daksh eServices co-founder MJ Aravind and NuVentures managing partner Venk Krishnan. According to reports by Money Control, the startup is aiming to assist the retail investors and middle-income groups in simplifying their wealth management and financial planning process.

What is WealthApp and how will it help you?

Currently, most of the investment firms offer their advisory services to only high net worth clients. However, WealthApp is aiming to help all income groups and investors by making the process of wealth and finance management simple and easy. The startup, which was started by four former Citibank executives Mitesh Shah, Sanjay Gowda, Gaurav Dhawan, and Subba Rao in 2016, advices retail investors on wealth management and tax-saving investments processes.

Mr. Dhawan told Money Control, “In India, investment advisory is just for the high net worth individuals (HNIs). A serviced individual needs as much financial advice as much as an HNI. We believe this space is highly neglected and we want to tap it.”

What the application really does is assess the risk appetite of a person and then recommend them some good investment options. The founders have a cumulative experience of over 40 years that was quite useful in streamlining the Bangalore-based advisory that has 20 employees. The startup deals with mutual fund portfolios only because they are regulated very well and are not very hard to understand. Also, the seed money requirement for mutual funds is very less as well.

Company planning more investment portfolios for future

The founder, Mr. Dhawan, further adds, “That suits the kind of individuals we want to target.” The startup company is already planning to add some more investment portfolios in the near future, like fixed deposit schemes (FDs) and systematic investment plans (SIPs).

Over 9% of the population of India invests in equity markets currently while only 2% of households know about equity. The Unites States market in comparison to Indian market “boasts of assets under management for mutual funds at 70%” notes Money Control. Mr. Dhawan further adds, “Most of this unexposed population resides in the tier II and III towns where people have no access to professional financial advisory.” The user interface of the application is English and the startup is developing its Artificial Intelligence (AI) capability to make the platform better in predictions. This project of the company is still a work-in-progress and it wants to go live by 2018.

The startup has several rivals as well, including wealth advisory tech firms like Goalwise, WealthTrust, Scripbox, and Tauro Investment Advisors.

 

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