Share India set to disrupt the algo-trading and fintech industry with two strategic acquisitions
New Delhi: Share India Securities Limited has announced the acquisition of two companies, namely – Algowire Trading Technologies Private Limited and Utrade Solutions Private Limited. With these acquisitions, Share India Securities Limited has taken the next evolutionary step towards providing a platform for AI-driven automated trading, strategy development and execution for its retail investors, as it continues to strengthen its position as a market leader and technology innovator in the fintech industry. Share India Securities Limited has principally agreed to invest INR 15 crores to gain a majority stake in both entities. This strategic decision is strongly aligned with the efforts of the Company over the years to enhance its retail footprint, invest in growth-oriented technology offerings and build out capabilities that add value to its clients and deliver the next level in automation. These acquisitions will significantly strengthen Share India’s tech capabilities as both the acquired companies are run by tech experts and have been in active operation for more than a decade.
Share India Securities Limited, with about 16,500 registered clients, 1,500 employees, 0.5 billion trades, and INR 1,593 million worth of assets under management (AUM), is uniquely positioned in the market to provide unmatched access to a wide range of advanced trading capabilities for multiple asset classes, allowing them to find new trading inspiration, build strategies, and rapidly capture new tech opportunities as they arise. Topping decades of consistent growth, the Company has greatly benefitted from the growing retail participation[1] in stock markets, backed by favourable demographics, rising financial literacy, and increasing internet penetration.
“From being traditional brokers, we are changing our course by growing our digital business. The winners will emerge from those who keep pace with technology and innovation,” said Sachin Gupta, CEO, Share India Securities Limited. With these two strategic acquisitions, we are breaking new ground for algo trading and a larger vision of the fintech industry as a whole. As a team, we are looking forward to merging our collective experience to provide superior data analytics, seamless user experience and a deep understanding of market dynamics. We will be marrying years of experience in the traditional broking industry and trading strategies to convert them into algorithms that our existing and potential customers will immensely benefit from. Our vision is to provide a whole new user experience and technological innovation that is unparalleled in the rapidly growing retail segment in India for the entire financial ecosystem. In essence, we will be making bleeding edge technology accessible to all and improving the trading experience by leaps and bounds. Share India is now on the path to become a leading fintech player.”
In India and across geographies, the rise in demand for reducing transaction costs fuels the demand for algorithmic trading. In addition, the emergence of artificial intelligence (AI) and algorithms in financial services is expected to provide lucrative opportunities for sector growth for the foreseeable future. The key acquisition made by Share India Securities Limited will provide the Company with a leading edge in the market. The coming together of traditional and algorithmic trading will provide users with unprecedented access to historical performance as per the user’s individual trading preferences and time horizon.
The combined new entity will leverage its resources to create tech products that meet the needs of both retail and institutional traders alike. Through these acquisitions, Share India Securities Limited hopes to further drive innovation that is strictly compliant with India’s regulatory norms.
The Company reported strong performance for the financial year 2021with its consolidated revenue growing at 98% to reach INR 4,480 million. Its consolidated profit-after-tax (PAT) grew equally at 98% to reach INR 807 million. Also, its PAT margin, Average ROE and Basic EPS also displayed robust growth. The Company clocked healthy CAGR growth for the last 5 years at revenue: 51%, and PAT:66%. The PAT margin has continuously grown from 16% in FY15 to 23% in FY21. The AUM of Mutual Funds increased to INR 1.5 billion, achieved its ADTO during the year of INR 10,000 cr, while its client-based turnover remained strong at 45%.