Heaptalk, JAKARTA – Gotrade, an investment application, collects US$15,5 million in series A funding led by Velocity Capital Fintech Ventures. The fresh funds will be utilized to enlarge its teams to deploy the products into a local market.
This investment circulation is also followed by worldwide investors such as Mitsubishi UFJ FinancialGroup (MUFG) from Japan, BeeNext from Singapore, Kibo Ventures from Spain, Picus Capital from Germany, and also the previously involved investors like LocalGlobe from the UK, Social Leverage and Raptor from the US.
This funding was revealed a year after Gotrade was launched. Gotrade acquired more than 500,000 users from 140 countries during the same period without conducting any marketing activities. This application’s viral growth occurs spontaneously as a result of user interaction. As the investing platform for everyone, Gotrade was founded in 2019 by Rohit Mulani, Norman Wanto, and David Grant.
Gotrade was founded to make investment accessible for everyone and everywhere. Three of them cooperate to enhance the Gotrade app to allow users worldwide to purchase fractional stocks from giant companies on NYSE and NASDAQ at only $1.
Gotrade secures investment at the seed-round $7 million in 2021 from LocalGlobe and Social Leverage, both of which are the early investor of Robinhood.
After receiving approval from Malaysia’s Labuan Financial Services Authority, Gotrade will debut its platform in an invite-only mode in March 2021, followed by a worldwide launch in September 2021.
Approximately 90% of Gotrade members are making their first investment in the stock market in the United States. Its customers have transacted more than $400 million, followed by 5 million transactions.
Gotrade, like Robinhood, does not charge a commission on each transaction. However, unlike Robinhood, Gotrade will not engage in the contentious practice of monetizing order flow payment. Gotrade earns money by collecting a charge ranging from 0,50% to 1,20% in the form of currency (the amount varies depending on the original currency) when a user chooses to deposit in local currency to be converted to US dollars for trading.
This fee also includes the quick deposit fee, allowing customers to take advantage of the trading opportunity without saving cash in their accounts. Gotrade is also piloting a premium membership product called GotradeBlack to ensure users access candlestick graphics, rating analysis, target price, and risk assessment for a monthly fee of $2.
After receiving the $15,5 million capital led by Velocity, Gotrade intends to expand into the local market. The financing brings the total Gotrade investment to $22,5 million.
“The money will enable Gotrade to grow its staff of 40 individuals and deploy the product in the local market, beginning with Southeast Asia.” Developing a local version of Gotrade will allow the firm to begin going to market, selling the product in the local language, and activating the local deposit mode in specific locations. The company expects to generate a substantial attraction,” said Gotrade’s founder, Rohit Mulani.
