FULFILLING ASPIRATIONS
Mr. Dinesh Thakkar
Chairman and Managing Director
Dear Stakeholders,
Since our inception in 1996, we have stayed committed to delivering the
best-suited products for our clients, in a seamless and convenient manner.
Recognising the opportunities presented by digitisation, internet
proliferation and smartphone usage, we were amongst the first traditional broking houses
to proactively transition to a digital-first business model. We made significant
investments in developing a robust tech infrastructure and incubating new products to
provide a comprehensive range of financial solutions. Throughout our journey, we have
continuously evolved to ensure that our clients benefit from cutting-edge and convenient
services in today's digital landscape. Our digital outreach efforts have been
particularly impactful, enabling clients from beyond metros and
Tier 1 cities to access and avail capital market products with ease.
This democratisation of financial services has been a cornerstone of our growth strategy
and we remain committed to deepening our roots in untapped opportunities. In FY24, we made
substantial investments across multiple fronts, including client acquisition, product
development, technology, talent acquisition, compliance and governance. These strategic
investments have yielded phenomenal results, and I am proud to state that by March 2024,
we surpassed a significant milestone by reaching over 22 million clients. We initiated the
setting up of our new businesses, i.e. the Asset Management and Wealth Management
businesses during the year to further our ambition of being an inclusive fintech player.
This achievement brings us a step closer to our ambitious vision of reaching a billion
lives in the coming years.
Our relentless focus on strengthening our tech platform has been
instrumental in driving our success.
We witnessed remarkable progress, with an impressive 86.5% growth in
average daily orders between Q1 and Q4 of FY24. This growth trajectory culminated in
achieving peak per day orders of more than 10 million, underscoring the scalability and
robustness of our tech. What is particularly gratifying is that our efforts have not only
expanded our client base but also diversified it. We have successfully attracted a
significant number of younger clients from Tier 2, 3 and beyond cities, demonstrating our
ability to connect with and serve a broader demography. This reach not only reflects our
commitment to democratising financial services but also positions us as a preferred choice
among the digitally savvy younger generation.
As we continue on this trajectory of growth and innovation, I'm
confident that our unwavering dedication to excellence and our forward-thinking approach
will propel us even closer to our vision of transforming the financial landscape and
empowering millions more in the years to come.
INDIA OPTIMISM STORY
Digitisation is the pivotal force driving India's sustained growth,
especially with the staggering number of internet users, surpassing 820+ million and
widespread access to high-speed mobile internet. The revolutionary India Stack has played
a transformative role in unlocking the potential of the country's internet economy. What
excites me is that this digital revolution is not confined to the metros and Tier 1
cities, but is creating opportunities in the Tier 2 and beyond cities, which are home to
over a billion Indians. These cohorts, characterised by increased mobile screen time,
rising aspirations and growing income levels, often prefer local influencers over
celebrities.
86.5%
Growth in average daily orders between Q1FY24 and Q4FY24
Despite the immense potential, these regions lack comprehensive
financial offerings, a gap effectively addressed by fintech companies, empowering this
vast population financially. At Angel One, our digitisation strategy is synchronised with
our commitment to being a steadfast partner at every phase of our clients' lives.
Substantial investments in building a robust technological infrastructure enable us to
serve a diverse client base, handle transactions at scale and empower clients across
regions that are otherwise underserved by the traditional mediums. Our Super App
initiative exemplifies this objective. Throughout FY24, we expanded the capabilities of
our app by scaling up our mutual fund distribution and commenced beta testing for the
distribution of credit and fixed income products. We complemented this product
diversification strategy with byte-sized educational videos, often delivered in vernacular
languages to better educate our clients and guide them in making informed decisions.
Central to our strategy is harnessing data from our extensive client
base to ensure that our services fulfil the emerging needs of our clients. The success of
our data-driven approach is evident in the sustained growth of our existing business.
Leveraging a vast pool of data, we developed predictive models using complex algorithms,
analysing client behaviour to augment engagement through personalised experiences. Deep
insights derived from data analysis play a pivotal role in decision-making, enabling us to
adapt swiftly to market shifts. Our data-driven machine learning algorithms reinforce
security protocols, safeguarding sensitive information and mitigating fraud risks. A
significant focus is also placed on scaling up our Assisted Business, with an emphasis on
addressing the underserved markets in Tier 2 and beyond cities. By establishing a robust
foundation and assembling a dedicated team, we aim to expand our network, forge new
partnerships and provide clients access to financial savings in a more structured manner.
Our localised approach in selecting partners resonates with clients
from
Tier 2 and beyond cities, who place higher degree of trust through
local entrepreneurs for their financial requirements. In this pursuit, our technological
expertise plays a crucial role as we infuse intelligence into our system, based on data.
Furthermore, our proposed business restructuring aims to realise our
aspirations of growing the business through our direct and assisted units, leading to a
more focused approach to the go-to market strategies and unlocking value for our
stakeholders. This strategic move underscores our commitment to attain operational
excellence and maximise value creation across all facets of our business.
FRESH CAPITAL INFUSION
As we aim to augment market share by sustaining growth across key
metrics, ensuring adequate capitalisation becomes paramount. Recently, we achieved a
significant milestone by completing a capital raise of
H15 billion through the Qualified Institutional Placement (QIP) route.
This infusion of capital is strategic to our growth ambitions.
The success of our data-driven approach is evident in the sustained
growth of our existing business. Leveraging a vast pool of data, we developed predictive
models using complex algorithms, analysing client behaviour to augment engagement through
personalised experiences.
Deep insights derived from data analysis play a pivotal role in
decision-making, enabling us to adapt swiftly to market shifts.
We are driven by ambitious goals to revolutionise the wealth management
industry through technology. By integrating domain expertise with cutting-edge technology,
we aim to establish a winning position in this rapidly evolving landscape.
The proceeds from this capital raise will primarily be allocated
towards margin monies with the clearing corporations and bolstering our Margin
Trading Funding (MTF) book. These prudent financial decisions
underscore our commitment to effectively manage our resources and maintain financial
stability amidst dynamic market conditions.
The overwhelming response from both domestic and foreign investors,
serves as a resounding validation of the confidence they have in our vision and strategy.
I express my sincere gratitude to all our stakeholders for your unwavering support and
belief in our journey. It is with your trust and partnership that we are empowered to
navigate challenges, seize opportunities and chart a path towards sustained success and
value creation.
INCUBATING OUR ASSET MANAGEMENT BUSINESS
With steady momentum, we are advancing our asset management business,
supported by a formidable team. Strategic leadership additions have fortified our pursuit,
bringing fresh perspectives and expertise to our Company. At the core of our vision is our
ambition to sculpt a distinctive business model, to empower a billion lives using passive
products, primarily through SIP plans for both Index
Funds and ETFs. This concerted effort positions us at the forefront of
industry innovation, enabling us to redefine standards and deliver unparalleled value to
our clients.
FORAYING INTO WEALTH
MANAGEMENT
We are driven by ambitious goals to revolutionise the wealth management
industry through technology. By integrating domain expertise with cutting-edge technology,
we aim to establish a winning position in this rapidly evolving landscape. Our first step
has been to assemble a high-calibre team of co-founders with a combined experience of over
six decades, specialising in scaling wealth-tech businesses with innovative digital
offerings. Our strategy is clinical, initially targeting UhNI and hNI clients before
expanding to digitally serve the affluent and emerging HNIs, a currently underserved
segment. We see immense potential in optimising costs, while achieving rapid scale up of
the business. Currently, we are awaiting regulatory approvals before launching our
operations.
ENHANCING BRAND VISIBILITY & EXPANDING MARKET
We are thrilled to announce our five-year associate partner sponsorship
for the esteemed Indian Premier League (IPL) commencing in 2024. This sponsorship provides
unparalleled brand exposure across on-ground, digital and televised platforms, allowing us
to connect with a vast audience, particularly in Tier 2, 3 and beyond cities. It presents
a fantastic opportunity to elevate our brand presence while also facilitating deepening of
India's Capital Markets as we onboard a diverse audience Pan-India.
REGULATORY ENVIRONMENT
I firmly believe that as the Indian capital market experiences
significant growth and welcomes many new investors and traders, it is essential to
establish appropriate regulations as guardrails.
The rising participation of retail clients, particularly from smaller
towns and cities, underscores the importance of proactive measures by regulators to
safeguard their interests and ensure their long-term sustainability in the market. At our
organisation, our senior leadership collaborates closely with regulators, actively
engaging in ideating, formulating and implementing regulations aimed at enhancing the
safety and security of investing experiences in India. We are committed to working hand in
hand with regulatory bodies to promote transparency, integrity and investor protection in
the capital market, thereby fostering confidence and trust among all stakeholders.
LOOKING AHEAD
We have observed a significant trend on our platform where clients
transition from novice traders to long-term investors over the years. This shift towards
value enhancement is not only encouraging but also signifies the longevity of our clients
on our platform, leading to sustained growth in customer lifetime value. It inspires us to
offer value-added services and collaborate closely with clients in their wealth creation
journey. This evolution highlights our unwavering commitment to client success and
deepening of relationships. Looking ahead, we are optimistic about the future and the
potential for continued growth. Our focus remains on innovation, delivering superior
client experiences and fostering sustainable business practices. Our investments reflect
our proactive approach to expanding our team, client base and technology to enhance client
experience and achieve our long-term growth and profitability goals. The evolving
landscape of the industry demands agility and adaptability and we are well-prepared to
navigate these dynamics.
In conclusion, I express my heartfelt gratitude to each member of the
Angel
One family, including our directors, employees, partners and other
stakeholders. Your dedication and support has been instrumental in our success. As we move
forward, let us continue together with confidence, resilience and a shared vision for a
brighter and more prosperous future. Best regards,
Mr. Dinesh Thakkar
Chairman and Managing Director