The New Dis­rup­tor

In­dia’s first al­go­rithm-based fin­tech re­search plat­form is pro­vid­ing in­vestors rel­e­vant tools to make in­formed in­vest­ment choices in the stock mar­ket.

Business Today - - CON­TENTS - By MAHESH NAYAK

In­dia’s first al­go­rithm-based fin­tech re­search plat­form is pro­vid­ing in­vestors with the rel­e­vant tools to make in­formed in­vest­ment choices in the stock mar­ket

Some four months ago, Mo­hit Ba­tra, Co-founder of Mar­ket­sMojo, of­fered his com­pany’s al­go­rithm-based re­search tool for stock mar­ket in­vest­ing to Moti­lal Oswal Se­cu­ri­ties. Ajay Menon, MD & CEO- Re­tail Broking & Dis­tri­bu­tion at the fi­nan­cial ser­vices firm, didn’t need much per­sua­sion to avail the ser­vices of Mar­ket­sMojo in an en­vi­ron­ment of in­creas­ing costs and shrink­ing rev­enues. With the prod­uct adding value to the clients of Moti­lal Oswal Se­cu­ri­ties and bol­ster­ing their port­fo­lio, the Mum­bai-based bro­ker­age has de­cided to make the ser­vice live for its clients. “It (Mar­ket­sMojo) is help­ing us to of­fer more in­for­ma­tion on stocks and their fun­da­men­tals to our clients. To­day clients have been de­mand­ing more in­for­ma­tion on com­pa­nies and Mar­ket­sMojo, given our fun­da­men­tal re­search fo­cused on around 220 com­pa­nies, will add fur­ther value to our ser­vices,” says Menon. Mar­ket­sMojo en­ables Moti­lal Oswal to of­fer in­for­ma­tion on more than 4,000 com­pa­nies to its clients. The al­go­rithm mainly runs on past data. It also pro­vides an in­dica­tive view on the fu­ture per­for­mance of com­pa­nies. “Clients will be able to view this in­for­ma­tion along with our re­search rec­om­men­da­tions (of our cov­ered com­pa­nies) through our trad­ing app and web-trad­ing por­tal. They don’t have to visit mul­ti­ple por­tals to fetch the in­for­ma­tion use­ful for their decision-mak­ing,” adds Menon. What makes Mar­ket­sMojo an in­ter­est­ing propo­si­tion for lead­ing bro­ker­ages? Mar­ket­sMojo helps in mak­ing in­vest­ment de­ci­sions by break­ing down in­for­ma­tion on each stock un­der three ba­sic pa­ram­e­ters – qual­ity, valu­a­tion and cur­rent fi­nan­cial trend. It analy­ses over 30 mil­lion

data points daily across mar­ket move­ments, fun­da­men­tal re­search, ex­pert rec­om­men­da­tions, port­fo­lio strate­gies and other fac­tors that have an impact on an in­vestor’s decision-mak­ing process. It started as a go-to in­vest­ment plat­form for in­di­vid­u­als only, but is to­day an in­te­grated ap­pli­ca­tion pro­gram­ming in­ter­face (API) for fi­nan­cial in­ter­me­di­aries. “The USP of Mar­ket­sMojo stems from fac­tors like un­bi­ased re­search, in-depth and per­son­alised port­fo­lio anal­y­sis and con­stant en­hance­ment of re­search and al­go­rithms,” says Ba­tra.

Mar­ket­sMojo was launched by Ba­tra and Joyson Thomas, both in­vest­ment pro­fes­sion­als. The two, who have known each other for nearly two decades, be­lieve that there is a dearth of fi­nan­cial in­no­va­tion in the coun­try, de­priv­ing peo­ple of an op­por­tu­nity to make money. While work­ing for the fi­nan­cial por­tal mon­ey­con­trol. they re­alised that in­ci­sive anal­y­sis of the stock mar­ket is avail­able to only a priv­i­leged few. Re­tail in­vestors gen­er­ally get the short end of the stick and end up los­ing money. Thus, it was a planned decision by the two to come to­gether and start Mar­ket­sMojo in an ef­fort to present an un­bi­ased per­spec­tive of the mar­kets to the com­mon In­dian. Thomas was the CEO of mon­ey­con­trol. com, prior to start­ing Mar­ket­sMojo.

In De­cem­ber 2014, Ba­tra and Thomas de­cided to start a ven­ture with the ob­jec­tive of us­ing their var­ied ex­pe­ri­ence to pro­vide a fresh view of look­ing at the mar­ket – an­a­lyt­i­cal, data-driven and un­emo­tional. “Our goal was to pro­vide re­tail in­vestors with rel­e­vant tools to make in­formed in­vest­ment choices,” says Thomas. Within three months of fi­nal­is­ing their plan, the duo roped in Haresh Chawla, ex- CEO of Network 18, to come on board as men­tor and found­ing in­vestor. A few of their col­leagues from mon­ey­con­trol.com – Karan Ba­tra (Chief Prod­uct Of­fi­cer), Ro­han Thale (Chief Tech­nol­ogy Of­fi­cer) and Rageesh M (Head of Tech­nol­ogy) – also joined them to form the core team.

With an ini­tial cor­pus of `4 crore, they started op­er­a­tions of Mar­ket­sMojo in March 2015. It was in mid2016 that the ven­ture raised a small tranche of `2 crore from a close friend of Ba­tra and Thomas by di­lut­ing 3 per cent stake in the com­pany. It gave the com­pany a valu­a­tion of $10 mil­lion (`66.67 crore). To­day, the founders hold 70 per cent stake in the com­pany. So, what makes Mar­ket­sMojo spe­cial? “No player in the mar­ket pro­vides sim­i­lar in­for­ma­tion. To­day, Mar­ket­sMojo has close to 1,40,000 reg­is­tered users with nearly 50,000 users vis­it­ing their site daily,” says Thomas.

Mar­ket­sMojo signed Ko­tak Se­cu­ri­ties as their first client a few days after their launch. “Un­like HNI and in­sti­tu­tional in­vestors, re­tail in­vestors want in­for­ma­tion than ad­vice and the wide spec­trum of com­pa­nies cov­ered by Mar­ket­sMojo helps us pro­vide in­for­ma­tion to our cus­tomers,” says Kam­lesh Rao, MD & CEO of Ko­tak Se­cu­ri­ties. So far, Mar­ket­sMojo gen­er­ates rev­enues through B2B tie-ups. It has three prod­ucts – Con­tent, Port­fo­lio Op­ti­miser and Dealer Smart – and each is priced at `50 lakh. “We have tied up with some of the big­gest broking houses in the coun­try to en­hance their busi­ness rev­enues and help their clients max­imise re­turns. To achieve this, we are of­fer­ing three so­lu­tions which in­clude re­search in­tel­li­gence, port­fo­lio in­tel­li­gence and dealer in­tel­li­gence,” says Ba­tra. The com­pany recorded a top line of `4 crore and a profit of `1 crore in 2015/16. “We are on our way to reach our tar­get of `5 crore of prof­itabil­ity for FY2017/ 18. Cur­rently, we are in talks with six to eight play­ers, and this year our B2C rev­enue model will also kick off,” says Ba­tra. To cre­ate aware­ness about their prod­ucts, the Mar­ket­sMojo team is look­ing at in­creased mar­ket­ing spend and strate­gic part­ner­ships and tie-ups.

While Mar­ket­sMojo tracks com­pa­nies closely, some an­a­lysts ar­gue that they can’t cap­ture and iden­tify multi-bag­gers of to­mor­row. But Thomas begs to dif­fer. “We dis­agree. In our Mojo stocks sec­tion, we have dis­played re­sults of our back-tested model. The mar­ket cap ag­nos­tic port­fo­lio has gen­er­ated more than 1,000 per cent re­turns in the last five years against top mu­tual fund re­turns of about 175 per cent in the same pe­riod. This is the most sought-after sec­tion on the site.”

It re­mains to be seen whether Mar­ket­sMojo can cre­ate a dis­rup­tion in the broking in­dus­try. But one thing is sure – the profit-mak­ing fin­tech com­pany has cre­ated a plat­form which is sim­ple and user-friendly, mak­ing it pos­si­ble for mil­len­ni­als and first-time in­vestors to learn about in­vest­ing in stocks. ~

The profit-mak­ing fin­tech com­pany has cre­ated a plat­form which is sim­ple and user-friendly, mak­ing it pos­si­ble for mil­len­ni­als and first-time in­vestors to learn about in­vest­ing in stocks

R A C H I T GOSWAMI

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