Ratan Tata-backed Upstox is now valued more than its rivals Zerodha and Groww

• Upstox has raised $25 million from Tiger Global, at a valuation of $3.4 billion.
• Upstox is the 40th startup to enter India’s unicorn club, and the seventh startup this month.
• The company, run by RKSV Securities, claims to have 6 million users registered on the platform.

Online investment platform Upstox is now valued more than its rivals Zerodha and Groww. The company has raised $25 million from US-based Tiger Global, at a valuation of $3.4 billion.

According to filings with the Ministry of Corporate Affairs, Upstox has approved the allotment of 18,671 Series C shares to Tiger Global at an issue price of ₹98,608 to raise ₹185 crore ($25 million).

This development was first reported by Entrackr.

Business Insider’s sources have confirmed the valuation of this round, highlighting that this investment is part of a larger round.

Upstox is the 40th startup to enter the unicorn club. It is also the seventh company to hit that milestone this month. Others include the Good Glamm Group, Curefit, Mensa Brands, No Broker and Spinny.

A unicorn, in startup parlance, is a company valued more than a billion dollars.

Upstox was founded by Ravi Kumar, Kavitha Subramanian and Shrini Viswanath in 2008. The company started off as a proprietary trading firm RKSV Securities, but ventured into retail brokerage with the launch of Upstox in 2012. It offers online stock market investment services, advisory services, mutual fund investments and more.

The company, run by RKSV Securities, claims to have 6 million users registered on the platform.

Source: Media reports

Last month, Groww had raised $251 million at a valuation of $3 billion.

Zerodha, which has never raised any capital from private investors, valued itself at $2 billion earlier this year in order to buy back employee stocks and give them returns.

Nithin Kamath, the co-founder and chief executive officer (CEO) of Zerodha, believes that the valuation it has accorded to itself could be conservative. Hurun had valued Zerodha at $3 billion in 2020.

Upstox hit profitability in the financial year 2019, but reported a loss of ₹37.99 crore in FY20 after a profitable run for two years. Rata Tata-backed Upstox has two subsidiaries — RKSV Securities and RKSV Commodities, with RKSV Securities being the bigger one.

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