Ratan Tata books 10 times profit on Upstox investment

Industrialist Ratan Tata has offloaded five per cent of his investment in Upstox, an online discount stock broking firm. Rata Tata had bought about 1.33 per cent stake in Upstox in 2016.

The other investors in Upstox include Tiger Global Management 31.1 per cent, Kalaari Capital Partners 15.21 per cent, GVK Davix Technologies 2.54 per cent, while the remaining 50 per cent stakes are with the promoters, including Ravi Kumar and Shrinivas Viswanath.

“We have concluded a buyback of 5 per cent of Ratan Tata’s holdings in Upstox, returning 10 times on his original investment as realised capital. He continues to hold 95 per cent of his stake in the company,” said the company.

Tata’s stake in Upstox has registered a whopping 23,000 per cent return on the original investment made in 2016, based on its last round valuation of $3.5 billion.

Kavitha Subramanian, co-founder, Upstox said, “Tata’s early belief in our vision was a huge vote of confidence, and his challenge to us was both simple and profound: How can we offer the same top-quality wealth advice to the everyday Indian that wealthy individuals receive? This question has been at the heart of Upstox.”

The vision inspired the creation of Upstox Wealth, a platform designed to give every Indian access to the best financial tools and advice — no matter their background or investment size, she added.

Upstox competes with major players such as Zerodha, Groww, AngelOne, and PhonePe’s Share.Market. As of August, Groww leads the market, followed by Zerodha, AngelOne, Upstox and ICICI Direct.