Business

PE investors oust FundsIndia.com founders

Srikanth Meenakshi (left) and C.R. Chandrasekar, founders of Fundsindia.com.

Srikanth Meenakshi (left) and C.R. Chandrasekar, founders of Fundsindia.com.  

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Move follows differences of opinion over how to run the company and its future plans

C.R. Chandrasekar and Srikanth Meenakshi, founders of Wealth India Financial Services Private Limited that runs online financial services platform — FundsIndia.com — have been ousted from the company following differences of opinion with the firm’s private equity investors, according to sources.

In 2015, the firm had raised a Series C round of ₹70 crore led by Faering Capital, with follow-on investments from current investors, Foundation Capital and Inventus Capital Partners.

Sameer Shroff and Aditya Parekh of Faering Capital joined the board as a part of the deal. Ashu Garg from Foundation Capital and Parag Dhol from Inventus Capital continue to remain on the board, the company had said during the fund raising.

“There have been differences of opinion between the founders and the investors over how to run the company and its future plans. The founders are terminated without cause. There are no irregularities,” said a person familiar with the developments. “Can confirm that I and Chandrasekar are not with the company. Cannot comment further,” Srikanth Meenakshi said when contacted. The company could not be reached for comments.

Representation ignored

It is understood that the top leadership team, along with employees, represented to the board against the move but they were ignored. Launched in 2009, FundsIndia.com is an online financial services platform that caters to retail investors across the nation and around the world. It has retail assets under management of ₹6,500 crore in mutual funds. The firm employs 330 people

Diversification

FundsIndia started out as a seller of mutual funds online and later diversified into other investment products including stocks, corporate fixed deposits and bonds. Mutual funds still contribute 75% to 80% of its revenue.

The company has over 12 lakh customers spread across 2,000 cities.

In 2013, it launched its first Robo advisory service. In 2010, the company raised its first round of funding from Inventus Capital, followed by a second round of funding from Foundation Capital in 2012.

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Printable version | Jan 28, 2020 4:55:38 PM | https://www.thehindu.com/business/pe-investors-oust-fundsindiacom-founders/article28159307.ece

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