Wealthy Secures $5.4 Million in Fresh Funding Led by Alpha Wave

Wealthy, a Bengaluru-based wealth management platform, has secured fresh capital of Rs 45 crore ($5.4 million) in a new funding round. This marks the company’s first investment round of 2 This funding was led by Alpha Wave Incubation Fund, which is an investment arm of Falcon Edge.

Investment Details and Purpose

To raise the capital, Wealthy’s board approved the issuance of 47,222 compulsory convertible preference shares at a price of Rs 9,556 per share. Regulatory filings accessed from the Registrar of Companies (RoC) reveal this information. Alpha Wave emerged as the leading investor, contributing Rs 20.7 crore to the round. Savrola Lakshmi LLC participated with Rs 16.38 crore, while Good Capital and other individual investors collectively contributed Rs 7.92 crore.

According to the filings, Wealthy intends to utilize the funds for expansion and general operational purposes.

Valuation and Previous Funding

Startup data platform TheKredible estimates that Wealthy’s post-money valuation stands at approximately Rs 278 crore ($33.5 million). This funding round adds to the company’s existing capital, bringing the total raised to over $16 million. Notably, Alpha Wave also led Wealthy’s Series A funding round of $7.5 million in early 2022. There’s a possibility that this might be an ongoing round, and Wealthy might seek additional capital.

Wealthy’s Offerings and Market Landscape

Established in 2015, Wealthy offers retail investors a suite of tools for investment management and tracking. Additionally, they provide advisory services and connect investors with wealth management professionals. Their website claims to have facilitated investments exceeding Rs 4,500 crore through their marketplace.

Following this funding round, Alpha Wave remains the largest external stakeholder with a 24.16% shareholding. Good Capital holds 9.69%, while co-founders Aditya Agarwal and Prashant Gupta collectively own 36.64% of the company.

Wealthy operates in a competitive landscape populated by other wealthtech platforms like Stable Money, Deserv, Cube Wealth, and others.

Financial Performance

While the company’s financial performance for FY24 remains undisclosed, filings indicate a significant increase in losses during FY23. The company reportedly witnessed an 8X jump in losses to Rs 24 crore, while revenue grew by 57.2% to Rs 11.82 crore during the same period.