Bengaluru: Upside AI, a SEBI-registered investment management startup, has raised $1.2 million in a seed funding round led by Endiya Partners.
Veteran stock market investor Vijay Kedia, Quantum Advisors chairman Ajay Nanavati and Myelin Foundry CEO Gopichand Katragadda also participated in the funding round.
The startup plans to use the funds raised to scale up its distribution, product, and tech teams that will focus on growing assets under management (AUM) from high net-worth individuals, family offices, and institutional investors.
Founded in December 2017 by Nikhil Hooda, Kanika Agarrwal and Atanuu Agarrwal, Upside AI is registered with the Securities and Exchange Board of India as a Portfolio Management Service and is currently focused on building products that follow a rules-based, systematic approach to investing.
The firm went live with its products to external investors in July 2019, with the first set of products focused on equity investing using proprietary machine learning algorithms to understand, recognise, and buy companies that are fundamentally good businesses.
Over the past year, the startup's AUM has grown 10 times to more than Rs 55 crore with funds from several HNIs, and family offices.
"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 Rs 1,000 crore AUM," said co-founder Agarrwal.
Upside AI aims to use technology to run the entire operation chain — from client onboarding and investment tech to live tracking and reporting through a seamless UI/UX for clients.
"Upside AI has already attracted marquee clients ranging from large family offices, venture capitalists, CEOs of large MNCs in India and the US on the back of unique investment tech that the team has built in-house and extensively tested,” said Sateesh Andra, managing director, Endiya Partners. “The funding will help them build a robust pipeline of differentiated tech products and a network of large distributors, wealth managers and stockbrokers.