Ratan Tata and Tiger Global backed "Upstox" weighs SPAC listing

, MoneyControl

Digital brokerage firm Upstox, which is backed by veteran industrialist Ratan Tata and marquee US venture capital firm Tiger Global, is exploring options for a public listing in the US market via the increasingly popular SPAC (special purpose acquisition company) route, industry sources with knowledge of the matter told Moneycontrol.

“Upstox believes it will get richer valuations in the US market. It considers itself as a full-fledged tech company,” said one of the persons familiar with the firm’s plans for a proposed SPAC listing.

The fast-growing online player, which recently joined the Indian Premier League (IPL) as an official partner, competes with the likes of Zerodha, Groww and Paytm Money and is riding a record wave of new age, millennial investors who opened trading accounts for the first time during the pandemic.

“Upstox has global ambitions and does not consider itself as merely a brokerage firm. As per ongoing negotiations, its underlying business is being valued at around $1billion,” a second person told Moneycontrol.

The firm which currently has over 2.8 million customers provides online investments in stocks, mutual funds, digital gold, derivatives, and ETFs for both investors and traders. According to reports, it is eyeing a customer base of 6-8 million by the end of 2021 and is keen to get into content curation, content discovery and wants to curate experiences for smartphone-friendly traders.

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