Stock broking firm Angel One has acquired the team of Bengaluru-based learning app Dstreet Finance, marking its first acquisition of a tech startup team.
With this move, Angel One intends to boost its market position and improve product offerings for the younger generation by strategically investing in products, technology, and talent, and forging partnerships through acquisitions, the company said in a statement.
Meanwhile, the Dstreet Finance team will lead the acquirer’s content, user engagement, and learning-related efforts.
This development closely follows Angel One’s recent in-principle approval from the Securities and Exchange Board of India (SEBI) to sponsor a mutual fund.
“We’ve acquired the team from Dstreet, which primarily caters to younger audiences, spanning various user segments. In the capital market journey, users go through stages like discovery, decision-making, transaction, and management, all while continuing to learn about managing their finances. The Dstreet team is well-equipped to create engagement solutions, content, and community offerings for these younger audiences,” Prateek Mehta, chief business officer of Angel One, told Inc42.
Founded in 1996 as Angel Broking, the brokerage firm rebranded to its current avatar in 2021. It offers a slew of services, including online stock broking, depository services, commodity trading and investment advisory services.
Mehta explained that their transition to a fully tech-driven company had resulted in substantial growth within their user base, with a particular emphasis on the under-25 demographic and residents of tier-II and III cities. These users are actively engaging with their platform, demonstrating high recency, frequency, and monetisation. The heightened user activity had also positively impacted their app ratings.
Given its massive customer base, Angel One is actively pursuing strategies to expedite the delivery of solutions and enhance customer value. The company has been exploring inorganic initiatives to bolster its go-to-market capabilities, expand its product offerings, and diversify the choices available to its customers.
In line with their aspirations, they were in the process of investigating opportunities in various areas, including manufacturing and distribution platforms, wealth management solutions, content engagement, and learning. Additionally, they were considering acquisitions to access valuable talent and intellectual property.
Founded by Suresh Bavisetti and Paarth Dhar, Bengaluru-headquartered Dstreet Finance specialises in content and creating engaging learning experiences tailored for emerging stock market investors. It claims to have onboarded and served 1 Mn users since its establishment in April 2021.
Talking about what Angel One aims to achieve from the acquisition, Mehta said, “Dstreet team has recently joined us, and we are currently in the stage of defining the problem we aim to solve. Our primary goal is to enhance our customers’ understanding of capital markets and improve their comfort levels in managing their finances. The exact solutions and outcomes will evolve as we work closely with the team.”
Angel One posted a consolidated profit of INR 305 Cr for the quarter ended September 30, 2023, as against a consolidated net profit of INR 214 crore for the corresponding period a year ago. Its quarterly revenue grew 40.7% on a year-on-year basis to INR 1,048 Cr.
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