Upstox, a leading fintech startup from India, was founded with a clear vision to make financial investing simple, fair, and affordable for all Indian investors. Here’s a look at how it all began.
Upstox was founded in 2009 by Raghu Kumar, Ravi Kumar, and Shrinivas Viswanath. The idea came from their personal experiences of how difficult it was for regular users to start trading or investing in India. They saw a gap in the process and decided to fill it[2][4].
The early days were challenging. Users had to download a 30-page form, print it, fill it up, and courier it to the startup’s office. This process was tedious, time-consuming, and complex. However, the founders were determined to change this and make investing easier for everyone[1].
Their vision was to use technology to simplify the investment process. They spent two years doing algorithmic trading and understanding the market to make this vision a reality. The goal was to make financial markets accessible to the masses, so anyone could interact with them easily[1][2].
The founding team of Upstox brings a wealth of experience and expertise. Raghu Kumar and Ravi Kumar, brothers who had returned to India from the US, had a strong background in trading. Ravi Kumar had worked on automated trading techniques in foreign currency markets and had experience in engineering and business development at Thinkorswim Trading Platform[2].
Shrinivas Viswanath, another co-founder, joined forces with the Kumar brothers to shape Upstox. Kavitha Subramanian, who joined in 2016, also played a significant role in the company’s growth. The team’s collective experience and passion for trading and technology have been key to Upstox’s success[1][2].
The founders’ early exposure to trading, including Ravi’s school days’ trading account and Raghu’s involvement during college, fueled their passion for algorithmic trading. This passion drove them to form RKSV, which later became Upstox[2].
Upstox has come a long way since its inception. From its early days as RKSV Securities to becoming one of the top brokerage houses in India, the company has evolved significantly. Here’s a look at its journey.
In 2009, RKSV Securities was launched with the aim of simplifying the investment process. Initially, the process was cumbersome, involving a 30-page form that users had to fill out and send back. However, with the launch of its retail trading offering in 2012, things started to change. The company began to experiment and eventually launched its app in 2016, making the trading service paperless[1].
The app allowed users to download it, provide basic details for KYC, and start investing in financial markets with just a few clicks. This marked a significant shift from traditional methods and distinguished Upstox from other players in the market[1].
Today, Upstox is a 550-member team led by its co-founders. The company has grown to become one of the top five brokerage houses in India and the second-largest discount broker in terms of active clients[1][2].
Upstox has achieved several key milestones in its journey. One of the most significant was entering the unicorn club in November 2021 after raising $25 million in a Series C round led by Tiger Global at a valuation of $3.5 billion[1][2].
In the same month, Upstox crossed 10 million users, surpassing rivals like Angel One. This growth has been fueled by factors such as the adoption of Aadhaar, cheaper smartphones, and the “Jio revolution” which increased internet penetration in India[1].
Here are some key milestones:
Upstox has expanded its product portfolio significantly over the years. The company specializes in various investment avenues including equity, derivatives, currency, commodities, mutual funds, initial public offerings (IPOs), GSec, and bonds[2].
The platform offers zero brokerage on equity delivery trades and up to Rs 20 per order for intraday, future and options (F&O), commodities, and currencies. This competitive pricing has attracted a lot of traders to the platform[1].
Here are some of the key products and services:
Upstox’s technology infrastructure is a cornerstone of its success. Here’s a look at its core platform architecture, security framework, and innovations in the industry.
The core platform architecture of Upstox is designed to be user-friendly and accessible. The company launched its app in 2016, which made the trading service paperless. Users can now download the app, provide basic details for KYC, and start investing with just a few clicks[1].
The platform is built to handle high traffic and ensure smooth transactions. It is designed to be intuitive and stable, making it easy for users to navigate and use[3].
Security and compliance are top priorities for Upstox. The company ensures that all transactions are secure and compliant with regulatory requirements. The use of e-Aadhaar for account opening has made the verification process much easier and secure[1].
Here are some security measures:
Upstox has been at the forefront of innovation in the fintech industry. The company has introduced several advanced features to enhance user experience. For example, the TBT Engine, a suite of advanced trading features harnessing Tick-by-Tick data, has been launched to provide more precise trading options[5].
The company has also undergone a complete redesign and revamp of its platform to make it smarter, more stable, and more intuitive. The new platform features a modern look with an updated logo and color scheme, representing the company’s growth and commitment to innovation[3].
Here are some innovative features:
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Upstox, a leading fintech company from India, has made a significant impact on the financial market. Here’s how they have grown and expanded their influence.
Upstox has seen a remarkable growth in its user base. Since its inception in 2009, the company has expanded rapidly. By June 2018, they had a substantial number of users, and by the end of 2020, they expected to cross the two million customer mark[2).
This growth is attributed to their user-friendly platform and innovative features. For instance, they introduced a high-speed Margin Trading Facility (MTF) that allows users to activate the MTF in just three clicks and conduct trades in as quickly as 10 seconds[2).
The company's focus on simplicity and accessibility has made it a favorite among both beginners and seasoned traders. Here are some key milestones in their user base growth:
Upstox has significantly expanded its market share in the Indian trading sector. They were the first to launch unlimited trading plans, which attracted a large number of traders and investors[1).
The company received awards for being the first broker to onboard the highest number of users in a single month, further solidifying their market presence[6]). Here are some highlights of their market share expansion:
This expansion is a result of their commitment to providing a hassle-free trading experience and reducing costs for their customers.
Upstox has been at the forefront of financial inclusion initiatives. They aim to make financial investing simple, fair, and accessible for all Indian investors. Here’s how they achieve this:
They offer a completely paperless account opening process, which was the first in the industry. This makes it easier for people to start trading without the hassle of paperwork[6]).
Additionally, they provide real-time data and tools to help investors make informed decisions. Here are some of their initiatives:
Upstox has had a remarkable financial journey, marked by significant growth and milestones. Here’s an overview of their financial story.
Upstox started with humble beginnings but quickly scaled up. Within two years of entering the retail trading space, they hit a trading turnover of ₹4000 cr, thanks to their loyal customer base[6]).
This rapid growth continued, and by the time they crossed the ₹60,000 cr+ mark in trading turnover, they had established themselves as a major player in the Indian trading market[6]). Here are some key points in their revenue growth story:
This growth is a testament to their innovative approach and customer-centric services.
Upstox’s path to profitability has been driven by their efficient use of technology and strategic business decisions. Here’s how they achieved profitability:
By moving their trading platform to the cloud using Amazon Web Services (AWS), they ensured high platform stability and scalability. This move helped them maintain 99.99% platform stability, which is crucial for trading activities[7]).
Additionally, they optimized their sign-up processes, which increased conversion rates by 5–10%[7]). Here are some steps in their path to profitability:
Upstox has received significant investments that have helped them grow and expand. Here’s a look at their investment rounds and valuations:
The company received its first round of funding (Series A) worth $4 Mn from Kalaari Capital and Mr. Ratan Tata. This was followed by subsequent rounds of funding from Tiger Global, which helped increase their valuation[6]).
With the Series C funding from Tiger Global, their valuation rose to $3.5 bn, making them one of the Indian unicorn startups[6]). Here are the details of their investment rounds:
Upstox has formed several strategic partnerships to enhance their services and reach a wider audience. Here are some of their notable partnerships.
Upstox has collaborated with various banking institutions to streamline their services. Here’s how these collaborations benefit their users:
While specific details on banking collaborations are not extensively documented, it is clear that such partnerships are crucial for facilitating smooth transactions and account management. Here are some potential benefits:
Upstox does not have widely documented merchant partnerships, but their focus on technology and user experience suggests they may collaborate with merchants to offer additional services. Here’s a hypothetical look at what such partnerships might entail:
Merchant partnerships could help Upstox offer more diversified investment options or exclusive deals for their users. Here are some potential aspects of these partnerships:
Upstox has formed significant technology alliances, particularly with Amazon Web Services (AWS). Here’s how these alliances benefit their operations:
The partnership with AWS has been crucial for Upstox’s scalability and platform stability. Here are some key points about this alliance:
This alliance has been instrumental in supporting their rapid growth and maintaining high service standards.
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