BetterInvest, an alternative investment platform, announced that it has raised $350,000 in a pre-seed round of funding from Chennai-based angel investors. The funding was led by Suresh Krishn, MD of Isha Homes and President of CREDAI, Tamil Nadu. 

Manoj Poosappan, JMD of Renaatus Projects Pvt Ltd., and Tamil film actor Kathir are some of the other investors in the round. 

Founded by Pradeep VS, Sedhumanikandan and Sriram Anax, the Chennai-based start-up is aimed at empowering retail investors with access to asset classes that were previously accessible to only the wealthy individuals. The platform said it offers investment opportunities across diverse asset classes ranging from private debts to commercial real estate.

The company said with this funding, it will formally open up the platform to over 3,000 retail investors, who have requested early access.

Revenue-Based Financing

The first asset class will be ‘Revenue-Based Financing (RBF)’ for retail investors to invest in content that is already sold to OTT platforms such as Netflix and Amazon Prime. The company claims it is the first brand to offer investment in content sold to OTTs as an asset class. 

“India’s awareness and maturity in terms of retail investments are seeing a significant power-shift, especially post-Covid. As more of the millennials and Gen-Z seek more informed decisions on financial growth, a significant chunk of this population is becoming retail investors, now looking for avenues beyond the standard financial asset classes to invest in. This has been a key factor in adopting alternative investment spaces such as Revenue-based financing, among the younger population,”  Pradeep VS, Co-founder & CEO, BetterInvest, said in a press release. 

He added that the company will be launching a series of asset classes over the next 12 months. The current round of fundraising will mainly be used for customer acquisition and asset class expansion.

“The asset classes that a High net worth individual (HNI) invests in are very different from the asset classes that a retail investor invests in. An HNI always targets ‘Alpha returns’ whereas retail investors struggle to achieve benchmark market returns. BetterInvest is breaking the barrier and solving the problem of lower returns or risky assets for many new-age small investors,” lead investor Suresh Krishn, was quoted in the statement.