Ratan Tata sells 5% stake in start-up, makes 23,000% profit
Ratan Tata, the renowned Indian industrialist, has sold a 5% stake in Mumbai-based stock broking start-up Upstox. The company confirmed this transaction and revealed that Tata received a staggering return of 23,000% on his initial investment. Despite this sale, Tata still retains 95% of his original shareholding in the firm.
Tata's initial investment and current stake in Upstox
In 2016, Tata initially invested in Upstox, a start-up backed by Tiger Global, acquiring a 1.33% stake. Following an equity round conducted by the company in September 2022, his share was reduced to 0.9%. The recent buyback of shares took place at a valuation of $3.5 billion, which the start-up had achieved back in 2022.
Upstox's financial performance and client base
In the fiscal year 2023, Upstox reported a net profit of ₹25 crore while its gross revenue exceeded ₹1,000 crore. As per data from the National Stock Exchange (NSE), the company had around 2.7 million active clients as of August. These figures indicate a strong financial performance and substantial client base for the start-up.
Upstox's tribute to Tata's vision and contribution
Kavitha Subramanian, co-founder of Upstox, acknowledged Tata's influence on the company. She stated that his vision inspired the creation of Upstox Wealth, a platform aimed at democratizing access to top-tier financial tools and advice for all Indians. The company's goal is to generate robust returns for all its investors and it takes pride in being able to return part of Tata's investment through this transaction.
