New Delhi, May 3, 2024: ET Money, India’s leading investment platform, has become a top player in the country’s rapidly expanding online wealth management market by focusing on long-term wealth accumulation for affluent Indians. This strategic choice has allowed them to avoid the allure of short-term stock trading. As of March 31, the platform helped its users manage INR 63,000 crore (approximately $8 billion) in investment assets and, on an average, is adding INR 2,700 crore of new assets every month.
The company’s subscription-based advisory service, ET Money Genius, has also demonstrated significant growth, with its paid subscriber base expanding at a compound annual growth rate (CAGR) of 162% over the past two years. This growth has positioned ET Money as India’s largest Registered Investment Advisor (RIA) in terms of the number of paid customers. ET Money Genius is unlocking a new customer segment with annual income between INR 10 lakh to INR 1 Crore—a demographic previously unable to afford high-end wealth management services offered only to the ultra-rich Indians. By leveraging technology, ET Money Genius offers affordable access to sophisticated advice for just INR 249 per month, pioneering a subscription model in the wealth management sector that mirrors successful strategies in the OTT space in India.
“Our growth in assets and Genius indicates the rapidly compounding Trust of our users in ET Money”, states the CEO of ET Money, Mukesh Kalra. “By eliminating commission fees on mutual funds and introducing a transparent, flat-rate advisory fee with our Genius service, we continue to deeply align our business objectives with our customers’ financial success”
ET Money has been consistently gross-profitable each month for the last 11 months and has shown robust revenue growth at a CAGR of 90% over the last three years. Notably, about 70% of its revenue is recurring in nature. Additionally, nearly all its new investors in the past nine months discovered ET Money organically through word-of-mouth referrals, and the company boasts an annual user retention rate of over 90%. Another boost to ET Money’s financial profile would be the recently announced Execution Only Platform (EOP) license by SEBI, which would allow ET Money to monetize direct mutual funds and improve its gross margin to go beyond 80%. High user trust and retention combined with a recurring revenue business model and improving gross margins suggest ET Money is on a solid path to long-term profitability and growth.
