RKSV Kalaari capital investment – Insiderview

Fellow traders & investors,

Read the news on RKSV securities raising Rs 27 crores from Kalaari Capital today morning on Economic Times. Being a CA who follows all the brokerages closely, I took some effort to go through the filings, here is quick overview of the deal:

  • Firstly, the news article reads 50,000 clients. It is not correct, it is lesser than 10,000 clients as per the latest list available with the exchange. Check this post with all brokers and their active clients.
  • Rs 27 Crores of investment has lead to dilution of around 18% stake in the business. So RKSV securities has been valued at around Rs 150 crores.
  • The revenue from operations for the last year was around Rs 7.5 crores. The net loss for the business in the last two financial years FY 2014-15 and FY 2013-14, have been Rs 7 Lakhs and Rs 73 Lakhs respectively.

I guess it was the need of the hour for them to raise some capital, with the losses over the last two years. It is very encouraging though that VC investors are now looking at startups in the capital markets. Fundsindia (around Rs 80 crores), Scripbox (Rs 20 crores), Samco/Indian trading league (Rs 20 crores), and now RKSV (Rs 27 crores). Most of these investments were committed before the recent bloodbath on the stock markets. It would be interesting to find out from the investors if they would have committed capital with so much turmoil around.

Wishing the team at RKSV securities all the best. Also hoping that they spend the money wisely and not just blow it all out on advertising like Samco securities.

Don’t forget to visit http://comparebrokerages.in/.

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Empowering Indian retail investors/traders,

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