Ratan Tata, Tiger Global-backed Upstox breaks even in FY23; revenue touches Rs 1,000 crore

Discount broking company Upstox, backed by Ratan Tata, has achieved breakeven in FY2022-23. The company is aiming for a 10-times jump in its customer base to 10 crore in the next 5-6 years, said its co-founder and CEO Rajiv Kumar. 

Apart from Ratan Tata, the company is also backed by investor giant Tiger Global. 

Upstox’s operating revenue crossed 40 per cent to Rs 1,000 crore, said Kumar. It also generated a positive net cash flow of approximately Rs 130 crore in the last quarter of FY2022-23. The company has cash reserves of over Rs 1,000 crore now and is looking for both organic and inorganic growth opportunities. 

Kumar reiterated the company’s commitment to driving growth sustainably and profitably. Founded in 2009, Upstox serves 1.1 crore customers across the country, with 85 per cent of them residing in Tier II and III cities, with Mumbai, Delhi, Pune, Thane, Bangalore, Jaipur, Hyderabad, Aurangabad, Nashik, and Nagpur contributing highest to the customer base. Moreover, 70 per cent are first-time investors.

However, the company has no fundraising plans at the present. It had raised $100 million as part of Series C funding in January 2022.

Kumar said that its financial stability will help it fortify its market position through both organic and inorganic routes and help it achieve the aspiration to have 100 million customers in the next 5-6 years. 

Upstox that competes with rivals such as Zerodha, said that less than 5 per cent of Indians are investing in stocks and the overall potential in the Indian market remains largely untapped, for which the company has paused expansion in the US in the last 18 months and is focussing on business in India. 

Also read: How IPL sponsorship gave discount broker Upstox a big lift? Co-founder Ravi Kumar decodes