Ratan Tata mints 23,000% return from this broking platform, owns stake worth $46.5 mn

Renowned billionaire businessman and philanthropist Ratan Tata has recently divested 5% of his shares in the discount brokerage platform Upstox, yielding an impressive 23,000% return on his initial investment. In 2016, the 86-year-old head of the Tata Group acquired approximately 1.33% stake in Upstox. The brokerage institution has confirmed the completion of a buyback involving 5% of Tata's ownership in the organisation.

Based on the latest valuation of $3.5 billion in the last funding round, Tata's investment in Upstox has yielded an impressive return of 23,000% since its initial investment in 2016.

According to the company, Ratan Tata had invested $2,00,000 in Upstox for a 1.33 per cent stake, and as per the latest round of valuation of the new age trading platform at $3.5 billion, his investment zoomed more than 232.75 times (23,275 per cent) to $46.55 million.

Upstox cofounder Kavitha Subramanian said: “We are particularly honoured that Mr. Tata, a respected and iconic figure in India, has been such a key part of our journey. His 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 everything we do at Upstox.”

She added: “That 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. We believe that everyone deserves the opportunity to grow their wealth, not just the privileged few. Our mission is to deliver strong returns for all our investors, and we’re proud to say that today we’re able to return part of Tata’s investment."

Upstox serves as a one-stop destination for a diverse range of financial products, such as stocks, IPOs, F&O, commodities, currencies, fixed deposits, P2P lending, government bonds, T-Bills, NCDs, gold, insurance, and more. In the previous fiscal year, Upstox achieved an EBITDA of Rs 200 crore and a consolidated net profit of Rs 25 crore. The broking revenue for 2022-23 witnessed a significant increase of 44% to surpass Rs 1,000 crore. Additionally, Upstox generated over Rs 200 crore in cash in the last two quarters of FY23.

In the current financial year, Upstox expanded its operations to include insurance distribution services. The platform now offers term life Insurance and plans to introduce health, motor, and travel insurance in the future. While Upstox has been recognized for its offerings in stocks, F&O, and mutual funds, the incorporation of insurance represents a significant step towards transforming into a comprehensive wealth management platform.