Wint Wealth, a debt investment aggregator platform, has said it has raised an undisclosed amount from a cohort of celebrity finfluencers including Ankur Warikoo, Tanmay Bhatt, Pranjal Kamra, CA Rachna Ranade.
Wint Wealth offers high net-worth individuals and retail investors, asset-backed fixed income products that offer higher returns than fixed deposits. It is introducing investment products that were earlier only accessible at high investment amounts. Gone are the days when 9-11% returns on relatively safe investment options required 50 lakhs to 1
crore minimum investment. Invest in such advanced products with minimum investment as low as Rs. 10,000.
This round was made available exclusively to retail investors, subject matter experts and finfluencers in a period of three months. As a result, 15 celebrity influencers have become equity shareholders of the platform. The funds will be utilised for marketing and expansion goals, according to a press release.
Besdies Warikoo, Bhatt, Kamra, and Ranade, the list has investors like Labour Law Advisor’s Mandeep and Rishabh, Mukul Malik of Asset Yogi, Akshat Srivastava, Raj Shamani, Shashank Udupu, Sharique, Abhishek Kar, Invest aaj for Kal, Think School, Abhi & Niyu, Vaibhav Sisinty.
Wint Wealth, in addition to the raised funds, will benefit from their extensive network, in a bid to secure future funding. Owing to their significant cumulative reach of 40 million, the said finfluencers will play a key role in introducing and educating retail investors about the alternative investment segment. Wint Wealth is eyeing 10-fold growth in the next 12 months and aims to penetrate deeper into Tier III and IV markets, owing to the said association.
With an AUM of over ₹180 crore, the platform is set to achieve over ₹1500 crores of AUM by July 2022. In 2021, the platform was the first debt investment platform to have crossed over ₹100 crore of AUM, the release said.
Ajinkya Kulkarni, CEO & Co-Founder of Wint Wealth said, “Being the first platform to exclusively open up an exclusive round for finfluencers, this round was a successful litmus test of our standing in the debt investments segment. Since financial education is at a nascent stage in India, we are glad to have on boarded experts who will bust myths about the debt investments segment while playing a noteworthy role in Wint Wealth’s growth. The significant influence of these investors in the retail investor community will act as a catalyst for Wint’s growth in the coming time.”
Ankur Warikoo, one of the investors from the cohort said, “If the last five years are to be sampled, one realises the importance of diversified asset classes and the new DNA of retail investors in India. I was impressed with the founding team, who have been seasoned entrepreneurs, to have brought debt investments to the mainstay in the retail investment landscape. I look forward to contributing to the growth of Wint Wealth and am eager about the journey ahead.”
The company announced its first seed round funding in 2021 from marquee investors such as Zerodha’s Rainmatter Fund, Kunal Shah (CRED), Pravin Jadhav (Paytm Money), Kushal Bagia (First Cheque), Vaibhav Domkundwar (Better Capital) and many more, as per the press release.
Wint Wealth will introduce Senior Secured Bonds in a publicly listed structure tomorrow (25th November 2021) on its platform. Investors would be able to invest as little as Rs 10,000 in these bonds and earn monthly interest. As much as 33% of the principal will be repaid every 9 months, giving a reinvestment opportunity to investors and reducing credit risk. According to Wint Wealth, this will be India’s first public issue bond backed by a security pool of property loans worth Rs 68 crore, which is 1.25x the issued bonds which reduces the risk aspect.
Ahead of the launch of the new public issue from Wint Wealth, FE Online caught up with Anshul Gupta, Co-Founder at Wint Wealth, to understand the new product and who should invest in it. Excerpts
What are Senior Secured Bonds? And why is it named like this?
A senior secured bond is one that is backed by a pool of security, such as gold loans, automobile loans, or property loans. In a senior secured bond, the term “senior” denotes that bondholders have first priority to be repaid if the NBFC defaults. If the bond-issuing NBFC fails to make a payment, the entity will be forced to file for bankruptcy, which will be governed by the applicable laws and regulations that protect the investor interest.
All Wint Wealth assets are democratized to make the debt landscape into bite-size investment instruments. The Senior Secured Bonds introduced by Wint Wealth enables retail investors to invest in fixed income assets with as low as Rs. 10,000. This gives them a chance to test the Debt and Bond market waters before deciding to invest more or not.
An ideal investor would be one who falls in the 30% tax bracket and is looking at investing around Rs. 50k to Rs. 1.5 Lakh. In terms of maximum investment, we recommend that Wint Wealth assets account for no more than 15% of your whole portfolio. Furthermore, this 15% should be spread across at least 5-6 assets from different NBFCs. In other words, only put 1-2 percent of your whole portfolio into each asset and diversify your risk accordingly.
How will Senior Secured Bonds generate returns for investors?
Normally NBFCs raise funds through Equity or Debt. They raise money in the market so they can lend money on higher rates for business loans, and more. After operational charges is when these NBFCs get their net profit. So typically it’s not the Senior Secured Bonds that earns the returns here but the money that is raised by NBFCs by expanding their loan book to earn interest and raise capital.
What is the expected return on investment? And, is it guaranteed? If not, what are the possible risks of investing in these bonds?
Wint Bricks Nov21 is providing 10.5% XIRR interest on a monthly basis. You will get 33% principal repayment every 9 months till 27 months.The returns on the assets are XIRR returns, which are computed in the same manner that debt mutual fund returns are generated, i.e. using the XIRR method to calculate an annual compound interest rate when interest is given back to you on an annual basis.
These Senior Secured bonds are designed with features such as an exclusive charge on the underlying security pool, amortisation over the security pool’s collateralisation, and strict covenants. While Wint wealth works towards mitigating the risk by verifying the individual loans in the pools, there is still a high risk factor involved. The three broad risks with this type of investment are – Credit Risk, Liquidity Risk and Fraud Risk thus there is no guarantee on the returns.
How to invest in these bonds?
On the launch day (November 25th), go to the Wint Bricks Nov21 website and click Invest Now (the button will be where the “Notify Me!” button is now), and we’ll walk you through the rest. Simply use the Scrip Code that we will provide once you click on Invest Now to look for the bond on your broker account. Ensure that the funds you desire to invest are pre-loaded into your broker account.
As Wint Bricks Nov’21 is a publicly listed bond, it will be searchable and visible through the following brokers: Upstox, ICICI, HDFC, 5paisa, Axis, Edelweiss, Zerodha, Upstox, ICICI, HDFC, 5paisa, Axis, Edelweiss.
How do Senior Secured Bonds compare to other options like FD, debt mutual funds?
While Wint Wealth assets give higher returns compared to debt mutual funds, the risk associated is higher as well. A benefit while investing with Wint Wealth is people get a chance to invest in individual bonds at small ticket sizes. However, we encourage investors to diversify their investment among Wint assets to mitigate risks.
How has Wint Wealth’s previous covered bond issues performed?
The 1st maturity of assets where we have completely repaid investors was in February this year. The other previous covered bond based assets on the platform are performing well with no downgrades and defaults. The next asset maturity is due in June 2022.
The funds will be used for marketing purposes, as Wint Wealth is experimenting with certain undisclosed asset classes that will come out in the next 3-6 months
Participants include Ankur Warikoo, Pranjal Kamra, Sharique Samsudheen, CA Rachna Ranade, Tanmay Bhatt, Abhishek Kar, among others
The finfluencers have a cumulative reach of over 40 Mn and will play a key role in introducing and educating retail investors about the alternative investment segment
Debt investor aggregator platform Wint Wealth has raised an exclusive/special round for an undisclosed amount from a cohort of financial influencers. The funding round saw participation from Nearbuy founder Ankur Warikoo, Finology Ventures’ Pranjal Kamra, marketfeed founder Sharique, stock market courses maker CA Rachna Ranade and 11 others.
The round was strategically made available exclusively to retail investment subject matter experts and finfluencers [influencers in the financial sector] for three months, cofounder Ajinkya Kulkarni told Inc42.
“While the amount is not substantial, the expertise, reach and financial education that they bring is unparalleled. The readers/viewers that go to them are essentially our target audience,” he added, he further emphasised that the investors will act as experts to Wint Wealth’s product roadmap, as well as brand ambassadors.
With the inclusion of these stalwarts, Wint Wealth also claims that it will benefit from the influencers’ extensive network — in a bid to secure future funding. The finfluencers have a cumulative reach of over 40 Mn and will play a key role in introducing and educating retail investors about the alternative investment segment.
The current set of 15 investors includes Ankur Warikoo, CA Rachna Ranade, Pranjal Kamra, Labour Law Advisor (Mandeep and Rishabh), Mukul Malik (Asset Yogi), Akshat Srivastava, Raj Shamani, Shashank Udupu, Sharique, Tanmay Bhatt, Abhishek Kar, Invest Aaj for Kal, Think School, Abhi & Niyu and Vaibhav Sisinty.
The funds will be used for marketing purposes, as Wint Wealth is experimenting with certain undisclosed asset classes that will come out in the next 3-6 months.
Introducing Low Risk – High Return Debt Investment Route To Retail Investors
Founded in 2020 by Ajinkya Kulkarni, Abhik Patel, Shashank Chimaladari and Anshul Gupta, the company offers SIP-style aggregated debt instruments which are less risky and provide high returns — such investment opportunities are usually available to high-net-worth individuals (HNIs).
Wint Wealth (previously GrowFix), started offering a fixed interest rate (10-11%) on loans with underlying assets such as gold or vehicles. Today, the startup boasts eight asset classes, with another 2 to 3 more in the making.
The startup believes that given the scenario where fixed deposits (FD) and debt mutual fund returns have come down considerably, there is a vacuum for products that give 2-3% higher returns than FD and are less volatile than equities.
Wint Wealth already claims to have an AUM worth INR 150 Cr to over 10K retail investors. The startup is eyeing 10x growth in the next 12 months with an aim to catapult its AUM over INR 1500 Cr and penetrate deeper into Tier III and IV markets.
The growth is backed by its association with the influencers, whose funding, as well as reach, will help the startup achieve marketing and expansion goals.
“Since financial education is at a nascent stage in India, we are glad to have onboarded experts who will bust myths about the debt investments segment. They will play a noteworthy role in Wint Wealth’s growth. The significant influence of these investors in the retail investor community will act as a catalyst for Wint’s growth in the coming time,” Kulkarni added.
Wint Wealth last year raised seed round funding from marquee investors such as Zerodha’s Rainmatter Fund, CRED’s Kunal Shah, Paytm Money’s Pravin Jadhav, First Cheque’s Kushal Bagia and Vaibhav Domkundwar’s Better Capital, among others.
What’s In It For Influencers?
While earlier big-name celebrities jumped at the chance to create private labels, these days the influencers are the leaders. Social media influencers and creators drive most of the conversation online these days.
Wint Wealth has similarly banked on the influencer bandwagon bringing the 15 influencers on board and creating a powerful brand image. With their skin in the game, Wint Wealth will come out looking like a trustworthy brand.
But what is in it for the influencers? Since the amount is not very substantial, when asked by Inc42, Kulkarni mentioned most of the wealth that will be created by influencers (in general) will be through equity investments and not their commercial relationships.
Digital platforms have a very unfair advantage [asset lightness and virtual reach] that most offline platforms don’t have, and thus money flows into them, he added. “For investors, especially in fintech platforms like ours, the equity will grow multi-fold.”