Wealth Tech Platform Elever Secures $1.1M in Pre-Series A Funding, Aims for ₹1,000 Cr AUM in Two Years

Elever Secures Funding to Democratize Institutional Investing, Targets ₹1,000 Cr AUM

Bengaluru, India – August 29, 2023 – Elever, a Bengaluru-based SEBI-registered Portfolio management Service (PMS), has announced a new funding round backed by Brand Capital and prominent CXOs. The investment will fuel the company’s expansion of its factor-based investment offerings, aiming to make sophisticated investment strategies accessible to a wider range of investors, including individuals, family offices, and NRIs/FPIs.

The funding arrives as Elever experiences growing demand for its innovative products, particularly its recently launched Factorcapro PMS. This strategy, unveiled in July, is designed to deliver both monthly income and capital protection, specifically catering to retirees and conservative investors.

“This funding round comes at a pivotal time as we double down on our PMS offering,” stated Anshul Sharan, Co-founder and CEO of Elever. “Backing from Brand Capital and leading CXOs validates our vision to make institutional-grade, factor-based investing accessible to individuals & family offices – both in India and abroad. This is not just capital – it’s strategic support to build long-term credibility and scale.”

Elever differentiates itself through its reliance on rule-based investing and machine learning, aiming to generate consistent and sustainable alpha. The company was founded in 2020 by a team of industry veterans: Anshul Sharan, Karan Aggarwal, Ram Subramaniam, and Santosh R.

Prior to founding Elever, Sharan held key leadership positions at CreditAccess Grameen, including Head of Strategy during the company’s 2018 IPO and later as Chief risk Officer. This experience underscores the team’s deep understanding of financial markets and risk management.

Beyond the Headline: The Rise of Factor Investing & Accessible PMS

Elever’s success highlights a growing trend in the Indian investment landscape: the increasing demand for sophisticated, yet accessible, investment solutions. Traditionally,factor-based investing – a strategy that focuses on specific drivers of return like value,momentum,and quality – was largely confined to institutional investors.

PMS offerings, while gaining traction, often come with high minimum investment requirements, limiting participation. elever’s approach seeks to bridge this gap, offering a more democratized pathway to potentially higher returns and risk-adjusted performance.

Looking Ahead: Growth & innovation

Elever is enterprising in its growth plans, targeting to surpass ₹1,000 crore in Assets Under Management (AUM) within the next two years. The company intends to raise a Series-A funding round within the next 12 months to further accelerate product growth,expand its distribution network,and bolster its team.

This funding round positions Elever as a key player in the evolving Indian wealth management sector, potentially reshaping how individuals and families access and benefit from institutional-grade investment strategies. The company’s focus on both income generation and capital preservation resonates with a growing segment of investors seeking stability and long-term financial security.

How does Elever’s B2B2C model differentiate it from competitors like Groww and Zerodha in the Indian wealth tech market?

Elever’s $1.1M Pre-Series A Funding: Fueling Growth in the Indian Wealth Tech space

Funding Details and Investor Landscape

Wealth tech platform Elever has successfully closed a $1.1 million (approximately ₹9.1 crore) Pre-Series A funding round. the investment was led by Peak XV Partners (formerly Sequoia Capital India & SEA), with participation from Titan Capital and other angel investors. This funding injection signifies growing investor confidence in India’s rapidly expanding digital wealth management sector. The round highlights the increasing demand for accessible and technology-driven investment solutions, especially amongst younger demographics. This latest funding brings Elever’s total funding to date to $1.5 million.

Elever’s Core Offering and Target Audience

Elever distinguishes itself by focusing on providing financial wellness solutions to employees through thier employers.This B2B2C (business-to-Business-to-Consumer) model allows Elever to reach a wider audience and build trust through established corporate relationships.

Here’s a breakdown of elever’s key features:

Financial Wellness Programs: Tailored programs designed to improve employees’ financial literacy and well-being.

Investment Access: Providing access to a range of investment options, including mutual funds, stocks, and other financial instruments.

Personalized Financial planning: Offering personalized financial advice and planning tools to help employees achieve their financial goals.

Employee Benefits Integration: Seamless integration with existing employee benefits platforms.

Elever primarily targets companies looking to enhance their employee benefits packages and improve employee retention rates. The platform caters to a diverse range of employees, from those new to investing to seasoned investors seeking more complex financial planning tools.

The ₹1,000 Cr AUM Target: A Two-year Roadmap

Elever has set an ambitious goal of achieving ₹1,000 crore in assets Under Management (AUM) within the next two years. This growth strategy will be driven by several key initiatives:

1. Expanding Corporate Partnerships: Aggressively pursuing new partnerships with companies across various sectors.
2. Product Innovation: Continuously enhancing the platform’s features and functionality to meet evolving customer needs. This includes exploring integrations with new financial products and services.
3. Geographic Expansion: Expanding its reach beyond major metropolitan areas to cater to a wider geographic audience.
4. Strategic Hiring: Investing in talent acquisition to strengthen its team across key areas such as technology, product development, and sales.

The Rise of Wealth Tech in India: Market Trends & Competition

india’s wealth tech market is experiencing significant growth, fueled by increasing internet penetration, rising disposable incomes, and a growing awareness of the importance of financial planning. Several factors are contributing to this trend:

Digital Adoption: A surge in digital adoption, particularly among millennials and Gen Z, is driving demand for online investment platforms.

Low Financial Literacy: A significant portion of the Indian population lacks financial literacy, creating a need for accessible and educational investment solutions.

demographic Dividend: India’s young and growing population represents a large potential market for wealth tech platforms.

Elever operates in a competitive landscape alongside established players like Groww, Zerodha, INDmoney, and Scripbox. however, Elever’s unique B2B2C model and focus on employee financial wellness provide a distinct competitive advantage. Other emerging wealth tech platforms include WintWealth and Finpeg.

Benefits of Employer-Sponsored Financial Wellness Programs

Employer-sponsored financial wellness programs, like those offered by Elever, offer numerous benefits for both employees and employers:

Reduced financial Stress: Employees who have access to financial wellness resources are less likely to experience financial stress, leading to increased productivity and engagement.

Improved Employee Retention: Offering valuable benefits like financial wellness programs can help companies attract and retain top talent.

Increased Employee Loyalty: Employees who feel valued and supported by their employers are more likely to be loyal and committed to the organization.

* Enhanced Financial Literacy: Programs help employees develop better financial habits and make informed investment decisions.

The Future of Wealth Management: Personalized & Accessible

The future of wealth management is likely to be characterized by personalization, accessibility, and automation. Wealth tech platforms like Elever are at the forefront of this transformation, leveraging technology to deliver customized financial solutions to a wider audience. The integration of Artificial Intelligence (AI) and Machine learning (ML) will play a crucial role in providing personalized investment advice and automating financial planning processes. Robo-advisors and algorithmic trading are also expected to become increasingly prevalent.