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Upstox, (formerly RKSV Securities), the new-age online discount brokerage firm funded by Mr. Ratan Tata, Kalaari Capital and GVK Davix, has clocked a robust 200 percent growth in monthly revenues and client base in the past year between January 2016 and January 2017 owing to its strong technology-heavy model to provide best-in-industry brokerage services at the lowest of costs.
Upstox contribution to the exchanges daily notional turnover increased to a range of Rs 14,000 and 18,000 crores and client base grew to over 80,000 this year, as compared to its last year’s figures. Upstox was clocking in an exchange turnover of about Rs 5000 - 6000 crore per day last year and had around 25,000 clients.
The company is planning to continue with its current growth phase and is targeting at least 300 per cent increase in turnover and customer numbers this year.
Its ‘zero brokerage’ model – that rests on prudent use of design and technology to cut costs at every level and transferring this cost benefit to the end customer – has enabled Upstox to grow at an exponential pace. Upstox, in fact, is among those extremely rare venture capital-funded start-ups in India to have turned profitable at such an early stage.
According to Mr. Ravi Kumar, Co-Founder and Director of Upstox, “India’s brokerage industry is headed the global way where discount brokerages have overtaken the traditional, big-ticket broking firms and banks. Discount broking is the future and the way forward for India as we witness more and more retail participation. With Upstox, we bring global knowledge of discount broking industry of the US and Canada markets to make a global-Indian model.”
Upstox sees a high participation from Tier III cities and small towns, besides Tier I cities, as its high-end technology platform can be supported on even 2-G connection without any lag and can seamlessly accept and execute orders.
“We follow a hybrid model, which allows every step of trading – right from account opening, client on-boarding to order execution to be done online, but, at the same time, it is backed by strong offline
distribution system as well. Our technology infrastructure not only gives choice to traders on different modes of trading but also provides an open platform to third-party developers to develop their own apps,” says Shrini Viswanath, co-founder and Chief Technology Officer (CTO), Upstox.
The company has also been able to reduce costs by eliminating all paperwork and not having its own offices. It operates out of its own office in Mumbai. It has satellite offices in most major cities and works with authorised partners in the small towns.
Upstox is in the process of strengthening its compliance and customer services function as well by putting together an independent cell that will be steered by a dedicated team of experts. It already has multilingual call centres in place to handle customer queries and complaints and is the only discount broker in the industry to offer a live chat intelligent support across its platforms.
“Our goal is to make Upstox a global company. We want to make this the first company that is built in India, by India but it’s not meant to stay just in India. We want to take this concept of discount brokerage with the passion for technology, design and ease of use and spread it across the world,” adds Ravi.