Latest news with #GripInvest
Mint
24-06-2025
- Business
- Mint
Ride the bond-wagon: VCs and fintech startups rush to tap the latest retail investor craze
After mutual funds, individual stocks and popular fixed-income products such as fixed deposits, venture capital (VC) firms and India's wealthtech companies are clamouring to tap a new, relatively niche instrument that's been growing in popularity among investors of late – bonds. Groww, Stable Money, Grip Invest and Wint Wealth are among companies that are riding the wave, looking to cash in on bond investments. Grip Invest, a series A wealth-tech company, is in talks with Orios Venture Partners and existing investors to raise almost $8 million, two sources aware of the development told Mint. Wint Wealth is also exploring early conversations for its next round of funding with new backers, two sources said. Also read: Municipal bodies still shun public bond issues. There's a lot that's holding them back Grip Invest did not comment on the development. Ajinkya Mukund Kulkarni, co-founder and CEO at Wint Wealth, confirmed there had been interest from investors, but said the company was still exploring this and hadn't actively started pursuing its next round of funding. Two other companies eyeing the space, India Bond and Bondbazaar, have also begun funding talks with VCs, two sources told Mint. IndiaBonds declined to comment on the fundraise, while queries sent to Bondbazaar did not elicit a response at the time of publishing this story. A bond is essentially a loan agreement where an investor lends money to a borrower (like a company or government) for a set period, and in return, the borrower promises to repay the principal amount (face value) plus interest (coupon payments) at a specified future date (maturity). Essentially, it's a fixed-income security that represents debt. Bond investments are increasingly catching investors' attention thanks to a strong tech ecosystem, a regulatory push, and promises of stable returns. Retail bond investments via online bond platform provider or OBPP-licensed platforms have seen explosive growth, rising from ₹242 crore in June 2024 to ₹972 crore by April 2025 — a staggering 430% CAGR, according to NSE and BSE data compiled by Stable Money. There has been a 327% increase in monthly transactions of corporate bonds and structured debt instruments (SDIs) over the past year, said a Business Today report in February. This is due primarily to Sebi's OBPP licence, which it introduced in 2022 to regularise investments in bonds. 'We're seeing a marked shift in investor behaviour since FY24-25. Retail investors are increasingly viewing bonds not just as an alternative to FDs, but as a core part of their asset allocation strategy," said Vishal Goenka, co-founder, IndiaBonds. 'There's growing interest in state-guaranteed bonds, high-yield NCDs and even in new products like digital FDs. With a volatile equity market and a benign interest rate cycle in the country we have seen volumes on our platform double in just the past six months." Incumbents join the rush Existing wealth-tech players are also entering the new segment to cash in on the rush. Stable Money, which once focused on FDs, diversified into bonds last year. The segment, which makes up less than 10% of its assets under management (AUM), is expected to grow to as much as 50% by December 2026. The company aims to triple its current AUM of ₹3,000 crore by then, Saurabh Jain, CEO and co-founder, told Mint. 'We believe bonds are an emerging wealth product, much like how mutual funds, stocks, and F&O have scaled over time. There are very few regulated products with this kind of potential. With simplified KYC and fully digital processes, it has become much easier to offer bonds online," he said. The company raised $20 million in a round led by Fundamentum earlier this month. Groww, one of the largest online stock brokers, which entered wealth management through its recent acquisition of Fisdom, isn't far behind. The company is in the process of applying for the online bond platform provider (OBPP) license, which Sebi introduced in 2022 to regularise investments in bonds. Since then, platforms need this license to facilitate the buying and selling of listed, rated, and regulated bonds online. More than 30 companies hold this license as of June 2025, according to Sebi's website. Regulatory push made it possible Apart from the credibility boost from OBPP licences, the framework also allowed small-ticket investments in bonds (starting from ₹10,000), giving retail investors better access to the asset class, in May 2024. In November 2024, changes to the advertising code for OBPPs further eased uncertainty for potential investors. Wint Wealth's Kulkarni explained, 'Earlier, we had restrictions under the advertisement code which was tailored for equity brokers. In December 2024, updated advertisement code came that enabled describing ourselves as a platform which provides securities having fixed returns. Such a proactive regulatory step has helped get clarity while building trust and improving investor confidence." Kulkarni added that a large chunk of the company's growth came after these changes in regulations. Also read: What drives the new corporate love for the bond market However, a VC who has chosen not to invest in the segment, and who did not wish to be named, said that while these platforms may show growing AUMs, many are not profitable and their monetisation models are still evolving. 'Interest rates are already starting to come down. Bonds are yield products, so if rates drop further, the core value proposition weakens," this person added. This impact is already visible on FDs. Over the past year, the RBI has cut the repo rate twice, which has reduced FD interests, making them less attractive. On the contrary, according to a Grip analysis based on data from Prime Database and the RBI, certain type of bonds, such as 'A' rated corporate bonds, have consistently offered yields between 10-11% over the past decade, in contrast to fixed deposit rates, which closely track the repo rate. Nishit Garg, partner at RTP Global, said it was because of these stable rates that interest in certain bond categories began growing after the framework was introduced. 'It's a natural evolution. Real estate is becoming unaffordable, traditional investments are saturated, and middle India is now actively looking for stable, alternative avenues for wealth creation," said Garg, who has led RTP Global's investments in Stable Money and Dexif. Is the market big enough? Amit Nawka, partner at PwC India, said the bond market remains largely untapped, which presents significant potential for growth. 'As interest rises and more players — including fintechs — enter the space, success will hinge on building investor awareness and trust, while staying aligned with evolving regulatory requirements," he added. Peers in the industry agreed that while competition was intensifying, this was a largely positive development as the market would grow and investors would learn more about bonds, much like what happened with stocks and mutual funds. Doing their own thing Companies are approaching the bond market in different ways. Stable Money, for example, is aiming to nudge its FD customers to take slightly more risk for better returns through government bonds. "One major reason is that margin-wise, bonds are slightly better than fixed deposits. Also, retail penetration in corporate bonds is just 0.5%, while fixed deposits are already a ₹75 trillion business. Even if 2% of users shift, that's an incremental ₹1.5 trillion opportunity in bonds. It's an emerging category, and we want to be at the forefront of it," said Jain. Also read: Two NBFCs have asked bondholders to ease covenants. Here's why. Others such as Wint Wealth and Grip Invest are looking to acquire first-time users through bonds or shift mutual fund investors into a slightly safer asset class amid market uncertainty. Dexif, meanwhile, is building an infrastructure layer that allows financial advisors, wealth managers, and distribution platforms to offer bonds to customers. 'Bonds are an amazing product but awareness is very low—mostly limited to corporations or ultra-high-net-worth individuals," said RTP's Garg, an investor in the company. 'To truly democratise bonds, we need to bring independent, neutral advisors into the picture, people already trusted by the masses."
Time of India
30-05-2025
- Automotive
- Time of India
Gensol defaults on BluSmart-linked bond repayment for May
Gensol Engineering , promoted by the founders of electric mobility firm BluSmart , has defaulted on payment of around ₹4 crore to its pass-through certificates ( PTCs ) holders this month. The last repayment that was processed successfully was in April, people aware of the matter said. The troubled solar engineering, procurement and construction company had raised these funds by issuing PTCs, which were distributed to retail investors via online platform Grip Invest. PTCs are usually loans that are raised in lieu of any underlying asset. In this case, the company had offered vehicles plied on the BluSmart platform as collateral for these loans. As the vehicles plied and generated revenue, repayments were processed out of that cash flow. Now, as the BluSmart cab service stopped and deal talks with ride hailing platform Uber and fleet operators are yet to come to fruition, the loan repayment has become uncertain. Confirming the development, Grip Invest founder Nikhil Agarwal said that while the total issue size was ₹5.6 crore, 56per cent of the principal amount has been repaid by Gensol and currently the outstanding is ₹4.04 crore. These loans were secured against 76 vehicles that were previously run on the BluSmart platform. On May 29, the Delhi High Court passed a final order and gave Vriksh Advisors, the lessor, the right to operate, sell or lease the assets. 'All vehicles are now in the possession of the lessor. The same have been inspected and found to be in good working order,' Aggarwal told ET. Vriksh Advisors is a subsidiary of Grip Invest. Aggarwal said the company has taken possession of the vehicles, inspected them, created charging facilities and is now in talks with fleet operators looking to deploy these vehicles on ride sharing platforms. A senior industry insider, however, said the repayment structure for PTCs might change even if the vehicles start running. 'Commissions, revenues, pricing and all the other factors would not remain the same across all platforms, so those things will need to be considered before starting the repayment schedule,' he pointed out. Vriksh Advisors is in the process of finding the best suitable buyer of the assets, so they can be used to repay the loans taken against them, people cited above said. 'People invested in BluSmart bonds and PTCs thinking of the cab services, which had a big brand value, and they were also attracted to the high returns offered by these instruments,' said an investor who has exposure to BluSmart bonds. According to a credit rating document issued by Care Edge Ratings on Tuesday, these bonds issued in 2023 were due to mature in 2027 and offered a coupon rate of 13.6per cent . ET had reported on April 21 that BluSmart investors were expecting major defaults on bonds they had purchased via platforms like Yubi, Centricity and others. The ride-hailing company had issued more than ₹100 crore worth of bonds over the last one year. The investor quoted above said that more than ₹80 crore of NCDs are due for repayments from BluSmart. This comes at a time when the Gensol promoters Anmol Singh Jaggi and his brother Puneet Singh Jaggi are under investigation for siphoning off funds from the company for personal consumption. While BluSmart has halted its operations, Gensol's bank accounts have been frozen under directives from the National Company Law Tribunal, Ahmedabad. State-run Indian Renewable Energy Development Agency (Ireda) last week said it has moved the Debts Recovery Tribunal, Delhi, against Gensol Engineering and its arm Gensol EV Lease, claiming a default of about ₹729 crore. Ireda had earlier filed an insolvency petition against Gensol. The entire saga started after market regulator Sebi kicked off an investigation into Gensol Engineering following a stock manipulation complaint it received in June 2024. Its findings showed that the Jaggi brothers diverted loans Gensol took to procure electric vehicles for personal use.
Time of India
13-05-2025
- Business
- Time of India
No new tax-free bonds issued since 2016. Here's how to tap existing ones for tax-free income
Tax-free bonds, a unique fixed income instrument, offer investors the advantage of earning interest income without the burden of taxation. Nikhil Aggarwal , Founder & Group CEO of Grip Invest, in an interaction with ETMarkets, emphasized that tax-free bonds became popular as they allow individuals, particularly those in higher tax brackets, to generate better post-tax returns . Tax-free bonds, which were initially issued by public sector undertakings ( PSUs ) under government directives, gained traction as they provided investors with secure, government-backed returns without any tax liability. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Learn How Smart Traders Use Data to Navigate Volatile Markets Trader Headline Learn More Undo "These came to be known as or are known as tax-free bonds because the interest is tax-free in the hands of the investor," he said, underscoring the appeal of these bonds for those seeking tax-efficient investments. Bonds Corner Powered By No new tax-free bonds issued since 2016. Here's how to tap existing ones for tax-free income Tax-free bonds, last issued in 2016 by PSUs, remain attractive due to their post-tax returns exceeding those of fixed deposits. Investors can access these AAA-rated bonds through wealth managers, stock market platforms, or online bond platforms. With interest rates ranging from 5.5% to 6% tax-free, these bonds offer liquidity and potential capital gains in a declining interest rate environment. Foreign banks dump $3 billion worth g-secs amid India-Pak tensions Is a US recession imminent and what would be the impact on India? How should we manage a robust portfolio in this scenario? Will NaBFID successfully navigate offshore bond market? Indian bond yields snap 7-week falling streak due to border conflict Browse all Bonds News with The last issuance was in 2016, and since then, no new tax-free bonds have been issued. However, Aggarwal pointed out that the existing supply remains robust, allowing investors to still participate in these instruments. "When they were done last in 2016, they were issued in large volumes and hence, there is sufficient supply in the market," he stated. Live Events Why tax-free bonds? One of the key advantages of tax-free bonds, as Aggarwal highlighted, is the favorable post-tax returns. While the interest rates on these bonds range from 5.5% to 6% tax-free, they are comparatively more attractive than fixed deposits (FDs) on a post-tax basis. For instance, a 6% FD return is taxable, reducing the effective yield to around 4.2% to 4.5% for those in the 30% tax bracket. "Tax-free bond today is actually a far better investment option than an FD from a pure returns perspective," Aggarwal emphasized, noting the significant post-tax advantage. In terms of liquidity, tax-free bonds also stand out as they can be easily traded in the secondary market without penalties. "In the case of a tax-free bond, they are actually super liquid," Aggarwal said, adding that investors can exit these bonds before maturity without facing a penalty, unlike FDs, which often impose a premature withdrawal charge. Also read: Is a US recession imminent and what would be the impact on India? How should we manage a robust portfolio in this scenario? Aggarwal also noted that in the current interest rate environment, where the Reserve Bank of India (RBI) has already implemented two rate cuts and is expected to lower rates further, tax-free bonds present an additional advantage of potential capital gains. "Investors purchasing tax-free bonds today will not only see interest but could see some capital appreciation as yields compress," he said. While new issuances of tax-free bonds have been halted, the possibility of reintroducing them remains uncertain. Aggarwal indicated that from the government's perspective, issuing tax-free bonds involves a trade-off as it leads to a loss in tax revenue. However, he suggested that the government could consider offering new tax-free bonds even at a lower interest rate, given their continued attractiveness as a risk-free investment option. Who issues tax-free bonds? Tax-free bonds, typically issued by government-backed entities such as NHAI, Rural Electrification Corporation, and others, carry AAA ratings, making them a low-risk investment option. "They do not typically see defaults. These are bodies like NHAI, Rural Electrification Corporation of India, and the likes. So, they are AAA rated, very secure instruments," said Aggarwal, drawing attention to their stability and security. How to invest in tax-free bonds? Despite no new issuances, retail investors can still access tax-free bonds through three primary routes. First, they can reach out to their wealth managers or bank relationship managers, who may have access to these bonds. Second, they can directly purchase these bonds through stock market platforms like Groww, Zerodha, or other brokerage apps. "You can actually try to buy these bonds directly in the stock market. Just open your Groww, Zerodha, whatever app you use and actually put in a request," said Aggarwal. The third option is through Online Bond Platforms (OBPP), where such bonds are periodically offered based on investor demand. For retirees and those seeking passive income, tax-free bonds can be particularly appealing due to their relatively higher coupon rates. Aggarwal explained, "The coupon on these bonds is in the range of 8% to 9%, making the interest payout quite healthy and interesting for someone looking for passive income." He provided a practical illustration: a Rs 10 lakh investment in a tax-free bond with a 9% coupon rate would yield approximately Rs 8,000 per month as interest income. Also read: Will NaBFID successfully navigate offshore bond market? For retail investors looking to enter the tax-free bond market, Aggarwal recommended exploring existing bonds from entities like NHAI and REC, readily available on brokerage platforms. With a minimum investment size of Rs 1,000, these bonds are accessible to a broad range of investors, offering a compelling combination of tax-free income, security, and liquidity. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
