Ratan Tata, a well-known billionaire businessman and philanthropist, recently sold 5% of his shares in the discount trading platform Upstox, earning an amazing 23,000% return on his initial investment. In 2016, the 86-year-old Tata Group chairman purchased a 1.33% interest in Upstox. The brokerage business has acknowledged the completion of a repurchase comprising 5% of Tata's stake in the company.
Based on the present valuation of $3.5 billion in the most recent fundraising round, Tata's investment in Upstox has delivered an amazing 23,000% return since its original investment in 2016.
Upstox cofounder Kavitha Subramanian stated, "We are very honored that Mr. Tata, a recognized and legendary individual in India, has become such an important part of our journey. His early conviction in our concept was a major vote of confidence, and his challenge to us was both simple and profound: "How can we provide the same high-quality wealth advice to the average Indian as wealthy individuals do?" This question has been central to everything we do at Upstox.
She went on to say, "That vision inspired the creation of Upstox Wealth, a platform designed to provide every Indian with access to the best financial tools and advice, regardless of background or investment size. We think that everyone, not just the affluent few, deserves the opportunity to increase their wealth. Our objective is to provide significant returns for all of our investors, and we are pleased to announce that we are able to repay a portion of Tata's investment."
Upstox offers a wide range of financial products, including equities, IPOs, F&O, commodities, currencies, fixed deposits, peer-to-peer lending, government bonds, T-Bills, NCDs, gold, insurance, and more. In the preceding fiscal year, Upstox had an EBITDA of Rs 200 crore and a consolidated net profit of Rs25 crore. The broking income for 2022-23 increased by 44%, surpassing Rs1,000 crore. Additionally, Upstox produced more than Rs 200 crore in cash in the last two quarters of FY23.
In the current fiscal year, Upstox expanded its business to include insurance distribution. The platform now offers term life insurance and intends to add health, auto, and travel insurance in the future. While Upstox has been renowned for its products in equities, F&O, and mutual funds, the addition of insurance marks a big step toward becoming a holistic wealth management platform.
