NSE-listed stock broking platform AngelOne on Thursday, November 2, said it is acquiring Bengaluru-based fintech startup DStreet Finance, with a focus on content generation and education for the younger generation of Gen Z traders and investors. The deal also marks the first-ever tech acquisition for AngelOne, which has been focusing on building in-house capabilities.
The specific financial details of the acquisition remain undisclosed, but AngelOne said that DStreet's team of 12 people will join the Mumbai-based firm.
With this acquisition, Angel One aims to strengthen its market standing and enhance its product offerings for the younger demographic by allocating resources towards product development, technology advancement, talent acquisition, and establishing partnerships through acquisitions, as stated in the company's announcement.
Speaking to Moneycontrol, Prateek Mehta, Chief Business Officer at Angel One, said, "DStreet has done multiple things specifically for the GenZ customers and their needs by the way they engage with capital markets like tools, content and learning about the market. We feel these synergies will be great for AngelOne."
Mehta clarified that it is a team acquisition and the assets and shares have not been acquired by Angel One.
He also said that Angel One is keen on the inorganic expansion route and will be focusing on more interesting startups to collaborate with.
“We are open to collaborating with more startups, we need to see if the firm is working on any solid problem statement, aligns with our culture, and can also help us scale up faster in areas where we don’t have a lot of presence is the idea behind our inorganic play,” Mehta said.
As a component of the agreement, Suresh Bavisetti and Paarth Dhar, the founders of DStreet Finance based in Bengaluru, will become integral members of Angel One, leading the charge in content development, user engagement, and educational endeavours. Additionally, they will explore the introduction of new assets under the Angel One brand.
Since its inception in April 2021, the platform claims it has catered to more than one million users. DStreet Finance had earlier garnered investments from notable backers including ICICI Securities, Expert Dojo, Archana Priyadarshini, and Mumbai Angels.
"The integration of the DStreet team is a strategic move towards enhancing our offerings for the next-generation clients,” Dinesh Thakkar, chairman and managing director of Angel One, said.
Earlier in 2023, the stock broker received in-principle approval from the Securities and Exchange Board of India (Sebi) for sponsoring a mutual fund.
Accordingly, Angel One would be setting up an asset management company and the trustee company, in accordance with applicable Sebi Regulations and other applicable laws.
"Slowly we are moving towards introducing our own AMC, and even wealth management thing," Thakkar told CNBC-TV18. "So, it would be very difficult to say how this revenue is going to shift because if you look at broking and all that, they are growing at a very decent rate. So, to revenue mix to change it will take some time," he added.
Angel One posted a 29.8% revenue growth in the September 2023 quarter, compared to June's ₹1,047.9 crore. The firm's net profit also rose by 38% quarter-on-quarter to ₹304.5 crore.
Shares of Angel One rose 0.93% to trade at ₹2,654 apiece in Thursday's trade.
The specific financial details of the acquisition remain undisclosed, but AngelOne said that DStreet's team of 12 people will join the Mumbai-based firm.
With this acquisition, Angel One aims to strengthen its market standing and enhance its product offerings for the younger demographic by allocating resources towards product development, technology advancement, talent acquisition, and establishing partnerships through acquisitions, as stated in the company's announcement.
Speaking to Moneycontrol, Prateek Mehta, Chief Business Officer at Angel One, said, "DStreet has done multiple things specifically for the GenZ customers and their needs by the way they engage with capital markets like tools, content and learning about the market. We feel these synergies will be great for AngelOne."
Mehta clarified that it is a team acquisition and the assets and shares have not been acquired by Angel One.
He also said that Angel One is keen on the inorganic expansion route and will be focusing on more interesting startups to collaborate with.
“We are open to collaborating with more startups, we need to see if the firm is working on any solid problem statement, aligns with our culture, and can also help us scale up faster in areas where we don’t have a lot of presence is the idea behind our inorganic play,” Mehta said.
As a component of the agreement, Suresh Bavisetti and Paarth Dhar, the founders of DStreet Finance based in Bengaluru, will become integral members of Angel One, leading the charge in content development, user engagement, and educational endeavours. Additionally, they will explore the introduction of new assets under the Angel One brand.
Since its inception in April 2021, the platform claims it has catered to more than one million users. DStreet Finance had earlier garnered investments from notable backers including ICICI Securities, Expert Dojo, Archana Priyadarshini, and Mumbai Angels.
"The integration of the DStreet team is a strategic move towards enhancing our offerings for the next-generation clients,” Dinesh Thakkar, chairman and managing director of Angel One, said.
Earlier in 2023, the stock broker received in-principle approval from the Securities and Exchange Board of India (Sebi) for sponsoring a mutual fund.
Accordingly, Angel One would be setting up an asset management company and the trustee company, in accordance with applicable Sebi Regulations and other applicable laws.
"Slowly we are moving towards introducing our own AMC, and even wealth management thing," Thakkar told CNBC-TV18. "So, it would be very difficult to say how this revenue is going to shift because if you look at broking and all that, they are growing at a very decent rate. So, to revenue mix to change it will take some time," he added.
Angel One posted a 29.8% revenue growth in the September 2023 quarter, compared to June's ₹1,047.9 crore. The firm's net profit also rose by 38% quarter-on-quarter to ₹304.5 crore.
Shares of Angel One rose 0.93% to trade at ₹2,654 apiece in Thursday's trade.
First Published: Nov 2, 2023 11:30 AM IST
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