online stock broker Samco secures $7.5 mn Funding from Bay Capital

In a round led by Bay Capital Investments, Mumbai-based online broker firm Samco Securities has raised $7.5 million (Rs 49 crore) in a Series B, the firm said. The round was also attended by promoters, undisclosed existing backers, and high-net-worth individuals whom the startup did not identify.

The firm, which runs mobile trading app StockNote, aims to use the funds to start new verticals for mutual-fund distribution, lending, and research and advisory.

Jimeet Modi, founder and chief executive of the startup, “The core broking operations of the company are adequately capitalised and are generating enough free cash flow. The funds raised will allow Samco to allocate some money for growth, apart from investing in artificial intelligence and analytical technology.”

Founded in 2015, the startup is run by Samco Ventures Private Limited. It claims to have over 75,000 customers across India and it sees the new verticals fuelling its next phase of growth.

Samco Securities, which had previously raised Rs 20 crore ($3 million) in a Series A round in 2016, said it was looking to grow revenue by 100% for the current financial year ending March 2019.

“Samco has had an impressive growth trajectory. We are impressed with the innovation that they have brought in an otherwise cluttered market. They understand the complex requirements of the market and have been successful in delivering unique solutions to the investor community in India,” said Siddharth Mehta, founder of Bay Capital.

Another mobile solution launched by the startup last month is StockNote, a content streaming and trading platform that aggregates and delivers news and information about stocks and sectors across India. The application uses the company’s proprietary Giga Trading Engine, which is an artificial intelligence and analytics platform.

While the application has notched up over 50,000 downloads in a month, the company is expecting over 500,000 downloads over the next few months.