The startup is in talks with institutional investors to raise more than $10 mn for an upcoming Series A round
Stockal, a platform that enables Indian retail investors to trade in listed US securities, has set itself $1 billion assets under management (AUM) as its next big target, even as the firm expands its presence to Southeast Asia and Eastern Europe.
The growth plans come on the back of a $3 million ( ₹22.18 crore) pre-Series A funding round that the New York-based startup has raised led by Aroa Ventures, the early stage investing vehicle of Oyo founder Ritesh Agarwal.
The round saw participation from Cadenza Capital Management, wealth management platform Kristal.ai, startup data platform Tracxn Labs, July Ventures and Credence Family office, said Stockal co-founder Vinay Bharathwaj.
“In the current round, we haven’t met most of the investors in person and managed to close the round over calls and Zoom," he said.
With the latest infusion, the six-year-old startup, which has an office in Bengaluru, has raised $5 million since it was founded. It is also in talks with institutional investors to raise more than $10 million for an upcoming Series A round.
The current round will help Stockal expand its presence to Southeast Asia and Eastern Europe and also help licensing to enable customers from these countries to invest through the platform.
“Most of these companies not only sell in India but also get their work done in India. However, the wealth distribution was always in the US," said co-founder Sitashwa Srivastava. “The idea is to be multi-country and add more asset classes. We have curated portfolios with asset management firms. We will launch bonds and hedge funds, which people are showing interest in."
The platform is also evaluating the aggregation of investments in hedge funds for fractional investments.
“We are in expansion mode and it is not even the tip of the iceberg. Currently, we are at a $100 million AUM but what it takes to get to $1 billion AUM is what we are thinking about," said Bharathwaj.
Stockal was founded in 2015 to provide investment signals for US stocks to retail investors by analyzing news and social media. In mid-2018, it pivoted to provide a platform to Indian retail investors who wanted to invest in US markets and formally launched the service here in January last year.