Data and mobile revolution with benefits of paperless transactions boost Upstox’s business in Tamil Nadu
Customer base triples and average number of orders from the state double for the discount brokerage firm over the last one year
With TN having the highest broadband connectivity and one of the largest mobile consumer base in the country, people here are increasingly preferring the digital route to tradingin stock markets.
The online and mobile platforms of Upstox operate smoothly on all networks and even on low-end smartphones. Thus, enabling people from remote corners of the state to participate in stock markets directly, or indirectly through the mutual funds’ route
Chennai, May 16, 2018
Upstox (formerly RKSV Securities), the new-age online discount brokerage firm funded by Mr. Ratan Tata, Kalaari Capital and GVK Davix, has seen its business from the state of Tamil Nadu and its capital Chennai grow exponentially over the last year. Upstox is currently India’s fastest growing discount brokerage firm, co-founded by Ravi Kumar and Chennai-boy Shrini Viswanath.
For Mumbai-based Upstox, Tamil Nadu has emerged as its third-biggest market with the average number of orders from the state doubling over the past one year. The customer base, both from the state and Chennai, have tripled in the period.
“It has been our commitment to create a business model that makes stock market investing and trading easily accessible to everyone across India. The benefits of pan-India adaptability and wide affordability of the Upstox platform have helped our brokerage firm to scale such heights, even in states like Tamil Nadu that are far away from our home base and the stock trading hub of the country,” says Ravi Kumar, Co-Founder and Chief Executive Officer (CEO) of Uptsox.
Upstox facilitates completely online, Aadhaar-based KYC process and paperless transactions, thus cutting out the complexities and costs of stock market participation for its customers. Besides, the fact that Tamil Nadu has one of the highest broadband and mobile penetration in the country is also why more and more people in the state are accessing stock markets through digital routes.
“I share the same zeal for technology as people in my home state and mingling our knowledge about technology with our global experience of financial markets, we have created a completely digital and high-tech platform that combines the best of finance and technology with an aim to increase capital market participation across the country.” says Mr. Shrini Viswanath, Co-Founder and Chief Technology Officer (CTO) of Upstox.
The online and mobile platforms of Upstox are highly resilient and operate smoothly even on 2-G connectivity and low-end smartphones, thus enabling people from remote corners of the country to lock in their trades without any time lag and even invest indirectly through the mutual fund route.
Upstox was the first discount broker in India to introduce commission-free trading to encourage retail participation in stock markets. Its ‘zero brokerage’ model has been a big draw for investors, especially in smaller towns and cities, who earlier stayed away from stock investments due to high costs involved and the complicated processes of buying and selling shares through the traditional brokerage route.
Upstox offers zero brokerage fees on its online and mobile trading platforms to investors who choose to stay invested in stock markets for the long-term by taking delivery of shares. For other market segments, it charges a flat rate of Rs. 20 per order on intraday trades, irrespective of the order size.
The pan-India client base for Upstox increased by 300 per cent to 90,000 from 25,000 over the last one year. Its revenues also increased by 200 percent in the period – its contribution to the exchanges’ daily notional turnover increased to a rangeof Rs 14,000 and 18,000 crores per day from around Rs 5,000-6,000 per day last year. This high-growth performance has catapulted Upstox to the league of those extremely rare venture capital-funded start-ups in India that turned profitable at an early stage.