By early 2024, Fyers plans to use margin trading to penetrate the lending industry

26 Dec 2023 , 02:02 PM

According to Tejas Khoday, co-founder and CEO of Fyers, an online discount brokerage platform, the company plans to go into the lending and portfolio management services (PMS) markets in 2024 with a focus on managing assets for High Networth Individuals (HNIs) in India and overseas.

A Buy Now Pay Later (BNPL) arrangement and the Margin Trading Facility (MTF) are comparable financial services that let stock market traders borrow money from their brokers to buy financial assets.

‘We intend to start lending with Margin Trading Facility (MTF) in early 2024. This is more akin to a bridge financing or short-term financing for trading,’ Khoday stated.

The company has submitted an application to the Securities and Exchange Board of India for a PMS licence.

‘We applied for the licence, and it is currently in SEBI’s possession. We find PMS to be really interesting, so we’re going down that path shortly. We are eager to get involved in the expanding business of managing High Net Worth Individuals’ money under PMS, Khoday stated.

Some of our current consumers asked us to inquire about managing their portfolios, which is why we even launched this service. However, when we were working on it, we realised that this could also be used to address the south Indian market and the use-case for NRIs, Khoday continued.

Fyers is an online discount broking company that was founded in 2015 by Tejas Khoday and his brothers, Shreyas and Yashas Khoday. The company is bootstrapped and currently has 500,000 active members. Fyers declared revenue of Rs 200 crore for FY23.

‘As a profitable bootstrapped startup, we have been growing organically and growing at a minimum rate of 100% year over year in terms of revenues. We are currently among the qualified stock brokers,’ Khoday stated.

The business faces competition from companies like Groww, Zerodha, and AngelOne.

‘We have changed our main area during the last five years, however we did attempt to raise donations in the past and were not successful. We don’t really have concrete aims, we are more of long-term players, we are headed in the correct direction, and we maximise our performance and personnel for more than three years. The major investors in this field may or may not be aligned with this, Khoday continued.

For feedback and suggestions, write to us at [e-mail]