Smallcase

Segment – B2C wealth management fintech company

About

Smallcase was founded in Bangalore in 2015 and launched in 2016. Vasant Kamath, Anugrah Shrivastava, and Rohan Gupta are all graduates of IIT Kharagpur.

Smallcase is a modern investment product that makes it easier for investors to build a low-cost, long-term, and diverse portfolio. A stock basket, ETF, or REIT that represents an idea, such as an objective, theme, or strategy, is known as a small case.

Fearing Capital invested $40 million in a Series C round on August 18, 2021. DSP Group invested $14 million in Smallcase on September 28th, and HDFC Bank invested an undisclosed amount in the Series B round on December 1st, 2020. Peak XV Partners invested $8 million in a series A round on February 12th, 2019, and Rainmatter Technology was also funded in a seed round on January 1st, 2019.

Philosophy/key insight 

Smallcase is a fintech company partnering with major financial brands to transform India’s capital markets by creating a trusted financial ecosystem for investors, advisors, and brokers.

Media

Smallcase: A new way to invest, October 21, 2019 https://www.fortuneindia.com/enterprise/big-things-come-in-small-cases/103692

Smallcase Technologies offers a technology platform where orders for varying quantities of multiple stocks in its investment instruments can be placed with one click. The company calls its products small cases, which are essentially baskets of stocks or exchange-traded funds (ETFs) picked thematically. For a like-to-like portfolio of shares, a small-cap is likely to outperform an MF by at least 1.5% (the average expense ratio of MFs). An investor buying into a small company needs only pay a fee to the brokerage house through which the shares are bought. Thematic investment in equities like Smallcase is a viable option for today’s young professionals, especially if they aren’t convinced about MFs’ fund allocations.

Zerodha’s Rainmatter, ENAM Holdings and Portfolio Management Startup MProfit, December 15, 2022 https://www.capitalmind.in/2022/12/investing-best-smallcase-2023/

In 2023, the three best small cases for long-term wealth creation are Capital mind Momentum, Capital mind Low volatility, and Capital mind Focused. However, not every investment strategy is appropriate for everyone. Smallcases are stock portfolios put together by investors or selected by experts and offered by brokers like Zerodha, Upstox, Icicidirect, and Groww. They differ from mutual funds in that they own mutual fund units, there is no monthly disclosure, and there are no short- or long-term capital gains. The most significant difference between investing in mutual funds and small-cap stocks is the user experience.