FundsIndia gets Rs20 crore investment for growth plans

Online investment services platform FundsIndia.com announced on Tuesday that it has raised Rs 20 crore to support growth plans. The portal promoted by Wealth India Financial Services (WIFS) received the second round of funding from Foundation Capital and Inventus Capital Partners.

FundsIndia was launched in 2009 to cater to retail investors with services including mutual fund advisory, buying and selling; direct equity investing; corporate fixed deposits, and the National Pension Scheme. The initial funding came from founders CR Chandrasekar and Srikanth Meenakshi.

In July 2010, Inventus Capital injected Rs 3 crore in the company. They have again infused about 25 per cent of the second round of investment. While Parag Dhol from Inventus Partner services (India) will continue on the board, Ashu Garg will join the board of directors from Foundation Capital. Company officials refused to divulge share divestment details.

“We started this business with the belief that technology-enabled service delivery is the most cost-efficient model for financial services in India. Both the market as well as the ongoing regulatory climate in the country has proved us correct. This round of funding empowers us to expand our vision both in terms of the market reach as well as the depth of our services. The funds would help us to improve our portal’s customer interface, beef up marketing initiatives and recruit senior management talent,” said Chandrasekar, who is also the chief executive officer of WIFS.

Silicon-Valley-based Foundation Capital is a venture capital fund that has investments in several leading financial services firms in USA. The company’s portfolio includes NetFlix, TreeHouse and Financial Engines. Domestic VC Investus has invested in growing companies including RedBus, TeliBrahma and CBazaar.

Ashu Garg of Foundation Capital said: “We are excited to be part of the FundsIndia growth story. Participation of the middle class in the Indian capital markets is a win-win proposition and mutual funds are vital for making that happen. FundsIndia brings convenience, cost benefits and an exciting online investment experience to its customers.”

Chennai-based FundsIndia offers mutual funds from 37 asset management companies; stocks and ETFs from NSE; fixed deposit products from seven corporates, and online-enabled NPS (National Pension System) services. It has tied up with 31 banks for online transaction facilities. The company has Rs 250 crore of assets under management in mutual funds.