Mumbai: Investment platform Grip Invest has raised$1 million in user-led funding round. Grip Invest claimed this fundraise to be India’s first-ever user-led funding round. This has allowed users of Grip Invest to become shareholders in the startup through a user-led equity funding round.
With this round, Grip has raised total funds of $4.6 million. The startup aims to utilize the funding to strengthen its team, augment its product portfolio and develop best-in-class features to enhance the digital investment experience.
On strong demand from users, the startup initiated this funding round, which helped Grip to raise $1 million in funding. Some top 200 users were given the opportunity to invest via convertible notes, which they will be able to convert into equity at a 20% discount in the next funding round.
This is a first in the Indian startup ecosystem, where a privately owned company has presented a unique opportunity to its users to become shareholders in the firm.
“For users to have such a strong belief in an 18-month old company is unprecedented and we are overwhelmed by it,” said Nikhil Aggarwal, Founder and CEO – Grip Invest.
Since Grip’s last funding round, according to Aggarwal, there was a growing demand from the users to present an opportunity where they can contribute towards the making of a tech-driven new-age investment platform.
“Based on the user demand, we offered this to our most engaged users and they showed immense love and belief to set us on a path to reinvent the investment landscape in India,” added Aggarwal.
“Building investor trust through asset-backed opportunities has been our primary focus since the beginning. We’re happy to have built a community of investors that have not only discovered new-age investment opportunities on our platform but now have also become the shareholders in our journey,” said Vivek Gulati, Co-Founder and COO – Grip Invest.
“Drawing on the trust our users have reposed in us and from the success of this initiative, we will continue to offer similar opportunities to more users in the near future,” added Gulati.
“In an industry first, our users have helped us inch a step closer to our goal of democratizing alternative investment opportunities. I am thankful for their confidence and trust in the platform. I am happy to deepen our relationship with our users, who will now become company shareholders,” said Aashish Jindal, Co-Founder and CPO – Grip Invest.
The initiative comes as Grip Invest is looking to create a new asset-backed non-market linked investment category.
In the past 15 months, Grip Invest has built a community of 150,000+ investors, has facilitated the leasing of assets worth over 160 crore, enabling more than 70 companies such as Udaan, Furlenco, Holisol, Loadshare, ChargeZone, etc., to access a different channel of growth capital.
Moreover, Grip Invest is witnessing a 35% month-on-month growth of users on its platform following strong demand for alternative investment opportunities in India.
Previously, Grip Invest had raised $3 million in a Series A round led by Venture Highway and Endiya Partners.