Chennai-based Wealth India Financial Services (WIFS), the company behind online investment services platform FundsIndia.com, has raised Series C funding worth $11 million led by Faering Capital and follow on investments from existing investors Foundation Capital and Inventus Capital Partners, reports VCCircle. FundsIndia will use the funds to expand its online financial services across the country and add to its service offerings, with a focus on mobile platforms.
As part of the deal, Faering Capital’s Sameer Shroff and Aditya Parekh will join the board of FundsIndia, and Ashu Garg of Foundation Capital and Parag Dhol of Inventus Capital will continue to be on the board with the founders of FundsIndia.
About 3 years ago, FundsIndia had raised Rs 20 crore from Foundation Capital and Inventus Capital, which was supposed to be used for customer base expansion and enhancing the company’s online platform with new products and services. In 2010, it had raised Rs 3 crores in Series A round of funding from Inventus Capital Partners. Kanwal Rekhi and Parag Dhol had joined the founders on the board of the company at that point.
Founded by C R Chandrasekar and Srikanth Meenakshi in 2008, FundsIndia is an online investment services platform that caters to retail investors for investments in mutual funds, equities, corporate deposits and equity investment. It offers mutual funds from all AMCs, stocks and ETFs from BSE, fixed deposit products from companies, Reliance MyGold Plan and other services.
It also allows users to link their bank accounts with investment options like mutual funds, equities, and fixed deposits, with options for managing multiple accounts, and automatically triggering investment related activities. The company had partnered with 38 mutual fund houses, 33 banks for online transactions, 6 Corporate – Fixed deposits online, equity brokering services for the National Stock Exchange, and Insurance policies.
Recent developments in the online finance sector
– Earlier this year, online marketplace Snapdeal bought a majority stake in cash and stock in Gurgaon based RupeePower, a financial products and services platform. Snapdeal is expected to introduce a financial services marketplace and offer financial services like home, auto and personal loans, credit cards and extended warranty among other services.
– In December last year, Amdocs and Triotech partnered with State Bank of India, the country’s largest lender, to provide mobile financial services to India’s unbanked population. The service was to run on BSNL’s networks. The solution would be provided under a five-year services contract and included money transfers, bill payment and airtime recharges.
– In August last year, eTechAces Marketing and Consulting, which operates the online insurance policy aggregator Policybazaar, launched a financial advisory services platform called PaisaBazaar. The platform would look to sell loans, credit cards, gold funds, mutual funds, exchange-traded funds and corporate deposits. The new website would focus on non-insurance products like loans and credit cards since government regulations don’t allow loans on Policybazaar.