India-based investment management startup Upside AI, which specialise in machine learning-based investing, has raised $1.2m in a new financing round.
Led by led Endiya Partners, the round was participated by investors including Vijay Kedia, Quantum Advisors chairman Ajay Nanavati and Myelin Foundry CEO Gopichand Katragadda.
Upside Ai said it will employ the fresh capital to scale up distribution, product, and tech teams that will work to increase its AUM from HNW individuals, family offices, and institutional investors.
Established in 2017, the firm is a Securities and Exchange Board of India (SEBI)-registered portfolio management service (PMS).
It leverages a blend of fundamental investing and machine learning to invest in companies in the Indian stock market.
After a year in beta, the firm rolled out its products to external investors in July 2019.
Its initial offerings were focused on equity investing and used proprietary machine learning algorithms to understand, recognise, and buy companies that are in good businesses.
At present, Upside Ai is said to be developing products that follows a rules-based, systematic approach to investing.
Upside Ai co-founder Atanuu Agarrwal said: “We believe the Indian asset management industry is in its early days with single digit penetration of household wealth. Over the next couple of years, we want to add 1,000 HNIs, family offices, and institutional clients and grow to INR 10bn AUM.”
Upside is also eyeing to use technology to propel its entire operation chain, starting from client onboarding to live tracking and reporting through a seamless UI/UX for customers.
Endiya Partners managing director Sateesh Andra said the funding will help the firm develop ‘a robust pipeline of differentiated tech products and a network of large distributors, wealth managers and stockbrokers’.
Last month, Swiss wealth manager Credit Suisse announced plans to hire more than 1,000 IT employees in India this year with the aim of transforming the country as a centre for technology innovation across the bank globally.
The same month, reports emerged about Advent International weighing options to divest its stake sale in Indian investment and wealth management firm ASK Group.