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Investment consultancy firm Way2Wealth Brokers, a Coffee Day venture, is looking for acquisitions in institutional broking.
It also hopes to get into asset management in a few years.
“We are looking for acquisition opportunities in institutional broking and are scouting the Indian market,” said Mr V. G. Siddhartha, Chairman, Coffee Day Co.
“But the bigger money is in asset management, which we will get into a few years later when Way2Wealth is at Rs 300 crore. Currently, the revenue is around Rs 140 crore.”
Around 11,000 customers trade with Way2Wealth everyday and 100,000 transactions are made daily. “Way2Wealth is a small business for our group, accounting for less than 3 per cent of our net worth but it will grow. We are targeting Rs 500 crore revenue in four to five years,” said Mr Siddhartha.
Mr Siddhartha is bullish about savings in the equity market exploding in the next decade or so.
“Only 3 per cent of savings is in the stock market. But fixed deposits are not earning money. With 9 per cent returns and 9 per cent inflation, there is zero gain. All this will change as people start parking their money in the equity market. And managing this will be important and we see opportunities for Way2Wealth.”
In 10 to 12 years, the Indian economy has the potential to touch $5 trillion, with savings of 30-32 per cent at $1-1.5 trillion.
“I am dreaming of at least 1 per cent market share,” said the Chairman of Coffee Day Co.
Way2Wealth has 600 branches across 200 cities. It hopes to have 1,000 branches in 18 months.
Mr Siddhartha was speaking at a press conference to announce an alliance with Karnataka Bank to launch an online trading facility for accountholders of Karnataka Bank.
The facility integrates savings and demat accounts of Karnataka Bank and trading account from Way2Wealth.
“Around 130 million do trading in capital market and 25 per cent of that is done online. We hope online trading will give Karnataka Bank an impetus,” said Mr P. Jayarama Bhat, MD and CEO, Karnataka Bank.
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