UP’s youth population is warming up to the concept of discount brokerage: Upstox

Lucknow, July , 2018: Upstox (formerly RKSV Securities), the new-age online discount
brokerage firm funded by Mr. Ratan Tata, Kalaari Capital and GVK Davix, is finding big takers
among millennials and the youth population of Uttar Pradesh (UP).
Total number of customers from UP, which constitutes the 6th largest market for Upstox,
increased by 155 per cent between 2016 and 2017. Remarkably enough, almost 80 per cent
of its customer base in the state fall within the age bracket of 19 to 38 years. The total number
of orders placed from UP also increased by about 43% in the same period.
The online and mobile trading solutions of Upstox are even popular in the state capital
Lucknow, as is evident from around 151 per cent increase in client participation and 27%
increase in the total number of orders from the city between 2016 and 2017.
Upstox was the first discount broker in India to introduce commission-free trading. High costs
and complicated processes involved in buying and selling of shares through the traditional
broker route were the biggest deterrents for retail investors earlier.
Upstox’s ‘zero brokerage’ model, thus, became a huge hit with investors, especially for the
tech and mobile savvy youth in smaller towns and cities. Even for seasoned intraday traders,
Upstox charges a flat rate of Rs. 20 per order, irrespective of the size of the order.
Apart from the cost benefits, easy on-boarding process, Aadhaar-based e-KYC and paperless
transaction facilities further made it easier for retail investors to invest in stocks using the
Upstox platform.
Both the mobile and online trading platforms of Upstox are extremely resilient, cost effective
and can accept and execute orders seamlessly without any lags even on low-end smartphones
and in areas with low bandwidth connectivity.
“Mobile and internet revolution has enabled a greater connectivity with the young population
of our country. As is evident from our growth trends in UP, we are able to get more and more
young investors and the millennials into the fold of stock market investing, directly or through
the mutual fund route on our mobile and internet platforms. The familiarity factor of these
two mediums comes into a big play to convince young investors and make them confident
about connecting with the markets online. In addition, our zero brokerage fee model has also
made market investments extremely pocket friendly,” says Mr. Ravi Kumar, Co-Founder and
Chief Executive Officer (CEO) of Upstox.
These unique advantages to retail investors have been driving unprecedented growth for the
discount brokerage firm over the last couple of years. The total all-India client-base and
revenues for Upstox both grew by 200 per cent in the past one year. Its client-base increased
to 100,000 at the beginning of this year from just 25,000 in the year-ago period.
Upstox’s contribution to the exchanges’ daily notional turnover increased to a range of Rs
14,000-18,000 crores per day from around Rs 5,000-6,000 crores per day last year.
This high-growth performance has catapulted Upstox to the league of those extremely rare
venture capital-funded startups in India that turned profitable at an early stage.