Stocks research firm MarketsMojo plans to raise $20-50 mn

We cover all 4000 listed companies in India. We provide stock calls, model portfolio calls, and have a large portfolio book that have been stored by investors on our site, exceeding Rs 50,000 crores on which we render advisory services to them. Today, we have a 20-30 per cent market share in India on retail research.

Around 1.2 million users are registered with us. We have a paid model of research, a premium model for retail customers who have a portfolio ranging from Rs 5 lakh to 1000 crores. Eight months ago, we started our own portfolio management services – MojoPMS when we obtained our PMS license. We primarily invest in the top companies within our PMS, which currently manages 1000 crores, mainly from HNIs, aiming to reach 5000 crores within the next year.

We offer research to five institutional clients – Axis Securities, Geojit, Angel Brokerage, SMC Insurance, and Integrated Investments. Previously, we had relationships with Kotak Securities, Motilal Oswal, Aditya Birla Capital, BSE, and NSE.

We are the first Indian company to go global in the internet space in innovation. We have launched an international firm in Dubai known as InfinHub (International Financial Hub), mirroring our operations in India across 21 markets. Today, we research every single stock in the US, Canada, Mexico, Japan, the UK, Europe, Asia, and smaller economies like Sri Lanka, Pakistan, UAE, and Saudi Arabia. Our aim is to become the Bloomberg of research globally. We aim to generate returns for clients globally, attracting investors whether allocating in the US, UK, Japan, China, or India.

Our growth has been rapid. Most users were acquired in the last 4-5 years, growing at a rate of around 70-80 per cent year on year. Average ticket sizes range from Rs 20 to 25 lakhs, with some portfolios holding even crores. Some users have prepaid for 7 to 40 years, with investments ranging from Rs 1-2 lakhs.

Despite tracking a large number of stocks, we have no dedicated research team. Instead, we use a data science model analysing the last 10 years of financial data for each company. Four main parameters are used to rate a company – quality, financial trend, valuation, and growth.

Quality is assessed based on the company’s fundamental growth over the last five years. Financial trend examines the company’s performance over the last five quarters. Valuation considers historical valuations, PEG ratios, peer valuations, and earnings growth potential. Technicals include one-week and one-month overlays to gauge market sentiment.

Instead of traditional forecasting, we adopt a data-driven approach focused on post-declaration analysis. This approach yields a higher success rate, approximately 7 out of 10 times, compared to traditional forecasting models.

Recently, we’ve focused on international expansion, particularly in the enterprise sector. We’ve introduced R-A-A-S (Research as a Service), targeting AMCs, banks, and web players with a terminal approach.

We are planning to raise between $20-50 million. Funding could come from private equity investors or strategic players interested in entering the market. Integration with a larger brand seeking an established research platform is one potential avenue. Alternatively, we may opt for a pure private equity investment. We are open to diluting up to 10-15 per cent of our stake in the company.