UPSTOX, (formerly RKSV Securities), the new-age on-line discount brokerage firm funded by Ratan Tata, Kalaari Capital, and GVK Davix, is making an investment in equity markets affordable for the masses through its ‘zero brokerage’ on-line and mobile trading platforms.
- Offers hi-tech mobile and on-line trading platforms, which are easy, affordable and operate seamlessly even in lower bandwidth connections
- No brokerage charges required for trading in equity delivery trades through Upstox platform; flat Rs 20 per order on intra-day trading in all other segments
- Eyes a three-fold growth in its Pune client base by the next year
Upstox was the first discount broker in India to introduce commission-free trading. It offers ‘zero’ brokerage on equity delivery trades and a flat rate of Rs 20 per intraday order for all other segments.
The high-end technology platform of Upstox can be supported on low bandwidth connections and without any lag and can seamlessly accept and execute orders. This is the primary reason for Upstox witnessing high participation from Tier II & Tier III, which includes Pune.
While Maharashtra comprises 25 per cent of the company’s total customer base, Pune is one of the fastest growing and most important markets for Upstox. It is the second biggest market for the company after Mumbai and comprises more than five per cent of its total customer base of over 80,000. Since the past one year, the company has witnessed a 300 per cent increase in customer participation from Pune. It is now looking at least three-fold growth in its client base from the city by the next year, leveraging on its ‘zero brokerage model’.
Ravi Kumar, co-founder and chief executive officer (CEO) of Upstox, says, “Pune has been a growing market for us. Most of the customers from the city are young professionals and in the age bracket of 20-30 years, who are more comfortable in using our technology platform, which is far superior to others, is reliable, can be easily used and very competitively priced.”
Upstox’s ‘zero brokerage’ model rests on prudent use of design and technology to cut costs at every level and transferring this cost benefit to the end customer. Being a tech-heavy, product-centric company, Upstox deploys intelligent technology solutions in areas where it feels are adding up to its own costs or time or of its client, thus ensuring impeccable user experience at the minimal price. The company has also been able to reduce costs by eliminating all paperwork and not having its own offices. It operates out of its own office in Mumbai. It has satellite offices in most major cities and works with authorised partners in the small towns.
“More and more investors are preferring technology platforms to participant on stock markets, because of obvious cost benefits and easy access. The fact that Pune comprises of more than nine per cent of our app users, with the share of Pimpri-Chinchwad at 1.5 per cent, points out to the changing preferences of investors from the city. We will continue to launch innovations and deploy more intelligent technology solutions to tap a bigger chunk of clients from this city,” adds Shrini Viswanath, co-founder and chief technology officer (CTO), Upstox.
The discount brokerage company clocked a robust 200 per cent growth in revenues and client base in the past year between December 2016 and December 2017 owing to its strong technology-heavy model to provide best-in-industry brokerage services at the lowest of costs. It is among those extremely rare venture capital-funded start-ups in India to have turned profitable at such an early stage.
Upstox’s contribution to the exchanges daily notional turnover increased to a range of Rs 14,000 and 18,000 crores and client base grew to over 80,000 this year, as compared to its last year’s figures. Upstox was clocking in an exchange turnover of about Rs 5000 – 6000 crore per day last year and had around 25,000 clients. The company is planning to continue with its current growth. The company is planning to continue with its current growth phase and is targeting at least 300 per cent increase in turnover and customer numbers this year.