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5paisa Capital vaults after board OKs fresh capital raise of Rs 251 cr
15-Apr-21   15:37 Hrs IST
The company will raise Rs 190.87 crore by issuing 38,17,400 equity shares and it will raise Rs 60 crore by issuing 12 lakh warrants to a set of marquee investors and promoters and promoter group. Each warrant is issued is convertible into one equity share.

Commenting on the funding round, Prakarsh Gagdani, CEO, 5paisa.com said, Investment from such marquee investors and promoters is a strong vote of confidence on our business model. The business has been witnessing rapid growth with total income of over Rs 140 crore for nine months of FY2021, up 98% year-on-year. In the midst of growing number of players, 5paisa has carved out a robust customer franchiseof more than 1.3 million customers and 6.5 million mobile app users. We have grown our product offering to customers over the years which currently include broking, mutual funds, insurance, peer-to-peer lending, international stocks, gold investing and margin fundingand look forward to adding more products.The availability of equity funds will help the company accelerate its investment in customer centric technology and sustain the pace of growth.

The announcement was made after market hours on Tuesday, 13 April 2021. The domestic equity market was shut yesterday, 14 April 2021 on account of Ambedkar Jayanti.

On a consolidated basis, 5paisa Capital reported a net profit of Rs 3.19 crore in Q3 December 2020 as compared with a net loss of Rs 2.16 crore registered in Q3 December 2019. Total income grew 84.6% year-on-year (Y-o-Y) to Rs 49.61 crore in Q3 December 2020.

5paisa Capital is engaged in providing financial products through its online technology platform and mobile applications. It is registered with SEBI as a stock broker, depository participant and research analyst, and with AMFI as a mutual fund distributor.

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