Mumbai-based stock broking startup Upstox has announced the successful buyback of 5 per cent of business tycoon Ratan Tata's shareholding in the company, achieving a 23,000 per cent return on his initial investment.
Despite this buyback, Tata retains 95 per cent of his original stake in Upstox, a company he initially invested in back in 2016 when he acquired a 1.33 per cent stake.
Following an equity round in September 2022, Tata's ownership in the startup decreased to 0.9 per cent. The recent buyback was executed at a valuation of USD 3.5 billion, a figure Upstox reached in 2022. The company reported a net profit of Rs 25 crore for the financial year 2023, with gross revenue exceeding Rs 1,000 crore. As of August, Upstox boasts approximately 2.7 million active clients, according to data from the National Stock Exchange (NSE).
"His (Ratan Tata's) vision inspired the creation of Upstox Wealth, a platform designed to give every Indian access to the best financial tools and advice—no matter their background or investment size. Our mission is to deliver strong returns for all our investors, and we’re proud to say that today we’re able to return part of Mr. Tata’s investment,” said Kavitha Subramanian, cofounder, Upstox.
