Wealthtech Startup Fisdom Focus on Asset Management Business

AMC will be established by wealthtech startup Fisdom with a Portfolio Management Service (PMS) license within the next 12 months, according to co-founder Subramanya SV. “We are presently in the financial and advisory services sector with our financial management, share broking, and filing taxes services. At a roundtable discussion on the launch of the customer service product “voice of customer” in Bengaluru, Subramanya SV stated, We will be aiming to establish up an Asset Management Company (AMC) with a PMS license within the next twelve months.

The business plans to first make its PMS licence available to High Net Worth Individual (HNI) clients through its Fisdom Private Wealth platform. Subramanya stated, “We will not be joining the mutual funds market for the time being because the licencing procedure there is a little challenging, but maybe in 5 or 6 years we will study this space.

Recently, wealth management firm Smallcase and stock brokerage Zerodha announced the creation of a joint venture (JV) to establish an asset management company (AMC) with a focus on passive mutual funds.

In September 2021, Zerodha Broking Limited acquired preliminary approval from the Securities and Exchange Board of India (SEBI) to establish an AMC. Fisdom would face competition from organizations that offer PMS services, such as Nippon India Mutual Fund. The minimum investment for PMS investments is Rs 50 lakh, whereas the minimum investment for mutual funds is Rs 500 per person.

 With a total of $23 million in capital, Fisdom’s most recent investment came from PayU in the form of a $7 million infusion in December 2020. Fisdom entered the internet broking market in 2021 to take on established firms like Zerodha, Groww, and Upstox. The PayU-backed company purchased Tax2win, an online platform for filing tax returns, in the same year for an undisclosed sum.

According to Subramanya SV, the business currently manages assets worth Rs 5,000 crore and serves almost 1.3 million people. Within the following three to four years, the company intends to launch an Initial Public Offering (IPO). Public markets are competitive, and without revenue and consistency, success is extremely difficult to attain. We will concentrate on it, Subramanya said.

Within the following 12 months, the company wants to turn a profit. 

The company also established a Customer Advisory Board, whose members will be hand-selected users. “The Customer Feedback Group, according to Subramanya, will be formed up of 30 to 50 people who were hand-selected and invited only. Through this board, the Board attempts to enhance and create new goods”.