Traditionally, India has been a market where customers are used to free advice or generally not appreciative when it comes at a cost to them. Bankers, agents and wealth managers till this point in time have never charged for advice. Bengaluru-based wealth management startup Capital Quotient saw an opportunity to monetise this by offering unbiased and real time financial advice to people online; it educates people about finances and talks about the importance of saving for achieving both big and small goals in life.
In recent years, co-founder and CEO of Capital Quotient, Sousthav Chakrabarty, has made his venture an AI-driven advisory-only firm by adding purpose behind the client’s every investment, so that there is a higher purpose or intent behind every investment made. It provides a full stack service covering 20 asset classes covering mutual funds, asset allocation, tax loss harvesting, retirement plans, stock recommendations, inception and period performance of portfolios, to name a few.
When asked how its solution helps the customers, Chakrabarty says, “We largely cater to customers looking to pay back their loans by making smarter investment choices. Most of the customers had high payments related to loans and credit cards. We helped consolidate their debt so that they could at least save something.”
Recently, the startup introduced SIPLY, a first-of-its-kind payroll-based programme aimed at helping blue-collar workers in factories which are below the PF threshold. “We had launched this with a view to make payroll-based deductions possible at investment sizes as small as Rs100 a month, and help them create their financial security net. The app is available in English, Hindi and Kannada,” he said.
At present, 90% of its customers are in the 25-35 age group, while the rest are aged 45-55 years. Additionally, it has 150 HNIs and 9,500-plus retail customers. The startup charges Rs49-300 as advisory fee per month. The Rs49 plan covers basic ‘starter’ services and the Rs149 plan adds financial advice. The Rs299 plan helps customers in executing the financial plan as well. Under each plan, every individual gets access to an advisor who helps the customer manage finances keeping in mind one’s life goals. For high-end customers, the fee is based on the amount of wealth being managed by Capital Quotient.
Capital Quotient has seen its revenue grow from Rs3 lakh in FY’17 to Rs1.44 crore in FY19. It has raised funding of around $1.2 million over four rounds, and is looking to raise a further $2 million over the next six months. “We are currently focusing on tier II/ III cities and hope to be present in 40 cities by the end of next year. Moreover, we are hoping to have a couple of overseas offices and have a significant customer base in all our target markets and product lines,” concludes Chakrabarty.