This is the first institutional funding for the Chennai-based firm. Founded in 2019 by FundsIndia cofounder Srikanth Meenakshi along with erstwhile FundsIndia executives Vidya Bala and Bhavana Acharya, the company has been bootstrapped all these years.
In a statement, the company said that unlike others who offer a single-product PMS, Prime Investor offers strategies spanning mutual funds, stocks, ETFs (exchange traded funds), and bonds.
Speaking with ET, Srikanth pointed out that with this funding the startup will move from a wealth advisory practice to purely a portfolio management service, where it will be able to service clients with a minimum asset base of Rs 50 lakh.
“We will be sunsetting our advisory services, we will move towards a full-stack PMS business,” Srikanth said.
Rainmatter, a Rs 1,000 crore perpetual fund backed by Zerodha’s internal accruals, has consistently invested in wealth management startups. It counts firms like bond distribution startup Wint Wealth, Pensionbox, a platform that distributes National Pension Scheme (NPS) products, and Capitalmind, an asset management company (AMC), in its portfolio.
Srikanth said that the company’s research and advisory services cater to around 4,600 to 5,000 subscribers with only about eight people.
Armed with the fresh funds, the firm has created a team of 30 and is looking to use technology to keep its operational costs under check.
“We have 60,000 users who have registered with us, around 12,000 have reviewed their portfolios with us — that is the first target base for our customer acquisition strategy,” Srikanth pointed out, stressing on the fact that the acquisition will be fully digital.