there is not a single platform which is giving you as similar experience as swii as zeroda as grow but is focused on fixed return products fds are not great Investments this is the notion that the founder of stable money wants to break in 2022 sorup discovered that while Indians love fixed deposits and hold 70% of their money in fixed income products there are absolutely zero platforms that give them the option to book an FD with the highest returns this SC sorab to build one of the largest FD booking Platforms in India with more than 700
crores in AUM today like how grow got Indians to book their first mutual fund how zeroda got people to buy their first stock or how Uber or Ola was their first cab stable money wants to become the platform where every Indian comes to book their first fixed income product in today's episode sorab shares Three core insights into how stable money went from an idea to a 700 CR pound [Music] house what was life what what brought you to IIT what brought you to this hunger like what was childhood so it's it's interesting so I got
a n log job and everybody was happy at home so I went landed in Delhi and we started the job on the first day they said and the job was morning 9 to night 12 and I still remember one day when I Le office late on that day and uh they asked me to wait outside on the reception and that was the time I just called my mom and cried so much saying mom like I am doing I have done I and the hopes that you had I had that we will do so much and
because I'm late and that was the time I decided and mom my mom said you come back so so I said and when I reached home and my everyday routine was the same that parents used to sleep at 10:00 and I was studying and as soon as they sleep I used to close the books and open the laptop and go onto every company's website and careers and apply one such email of maybe maybe 7800 application I have done was to fractal and next day I got a call and I went to Bombay crack that that's
how FR happen with tiny it was very clear I want to do something of my own want to see how the ecosystem is I want to work with and while coming back I remember in the flight I started making a list of people that I want to work with right and obviously you start with the best possible name in your head and put down name of somebody and he agreed and his name is Kar GLE first call he said yes I left tiny all in 3 months the idea was very simple that procure from Farmers
and delivering it to the restaurants that was the business and that was truce true price so one year into truce we started looking for acquisition opportunities for us and that's where I pinged Hara again and said K why don't you think of acquisition we started that conversation but it got closed at a point saying that okay right now that's not the priority for us but we like you folks you guys can come but we don't want to acquire the business we said okay we shut it down separately and got um aih hired our team that
was a crazy ride and then again after 2 and a half years that thought came on what do we do next F got the opportunity to then Navi mutual fund Sor from IIT he's been a CEO at na'vi he's killed at swii you get funded let's zoom out and ask what is what's stable like just explain to me like what's stable so when we were talking to a lot of users who are buying mutual fund for the first time right we said ke this is na'vi mutual fund which we want to be your first mutual
fund when you try right and there were two things happening grow has built right what users are going and buying their first mutual fund zero has become where you are buying and investing in your first stock people are using swii people are using zomato people are using Ola people are using Uber but the same user who is doing Investments like this who have seen amazing app experiences like this when it comes to their fixed return personal finances 70% right they are using a very traditional ways either going to Banks and booking going to net banking
and booking their RS or going to some um wealth adviser to ask for a bond and signing the papers and giving it there and we said that this is a bigger Gap where there is not a single platform which is giving you as simless experience as swii as zeroda as grow but is focused on fixed return products right which is the largest set of your investment is Sovereign Gold Bond Government Bond corporate bonds fds debt mutual fund any that is a fixed return prod and said that is the need that we solve and the emotion
that we realize other when it comes to these people right these people feel very smart when they do grow when these people feel very smart when they do um uh zero these people will tell you liquid fund but when it comes to fixed return products they don't feel smart said that is the emotion that we want to Target we want to make people feel smart about their fixed return S as well I still don't understand maximum I would go and make an FD or some or something is maybe once a month yeah so why is
there a need for an app what has happened in India is in Last 5 Years lot of users have got online have started doing Investments right because of the whole market so 70 80% of the new users have come in last 5 years now there is the co happen right lot of the recession well p is happening right people have seen so much ups and downs for the first time that I was just talking to a 24 year guy he said that I was looking at a lot of influencers lost money in crypto now I
realize the importance of there has to be a balanced portfolio so first there is that need that is uh coming in second thing is in terms of options available the options which are available for top 1% of the wealthy people in India is not available to this I'll tell you the wealthy people still have around 35% of their money in fixed deposit or liquid funds and they don't do like ICI or sdfc they do that but they will also distribute it across multiple Banks there are small Finance Banks which are equally safe give you 5
lakh insurance like HDFC up to 5 lakh but we give you 9% return where HDFC might be giving you a 6% return right so that additional 3% return because of which people are saying it doesn't beat inflation the top wealthy people do that investment we don't how are these smaller Banks able to afford to give High interest rate in the first place yeah every Banks cater to a different target audience their revenue model is very different the loans that they offer are at a different interest rate and all of these small Finance Banks right whether
it isan utar any small Finance bank that you take right which you might have not heard but in that region is a big bank right is been insured up to 5 lakhs and here is where you get 9% where you don't get it from the uh big Banks and these smaller decisions Right Moving from 5% to 9% is a small but very important decisions for you to make and that's where when we see that a lot of people when they every gets matured and comes into the bank account again they where should I invest and
those are the options that we are trying to get onto the stable money your problem is absolutely valid that hey this is once a month once a quarter activity right it's not like I open grow every day and take do strs how do I do this but if you see the ticket size on this ticket size is easily 10 to 20x of the ticket size that goes into stocks and right I think 160 lakh CR kfd so this is there is a large ticket size but if you see there is still a lot to get
catch catching up right like physical bank andd is 3 lakh rupes ticket size 60,000 rupes is the ticket size when people are doing it on net banking right so this has to go up so a lot of people are still adopting Tech into doing that so this for the mass of the India is this and our goal is that we want to capture this mass of India and sell our first fixed income product to them sell our first FD of that user has to be an our platform first bond that user buys has to be
on our platform for Sovereign Gold Bond that they buy has to be an our platform so that's the thing now the biggest question that everybody asked us is why can't other companies do that yes is that people have compartmentalized expertise they have said that Equity is a different expertise mutual fund is a different expertise debt is a different expertise right you will not go and talk about the same problem statement to everybody because right from Founders to designers to good Engineers to people who are in tier one tier two City everybody told us that they
don't understand the product well like what we say FD is such a well-known product people still don't know there is a five lak insurance this F lakh is per user per bank it's not overall together so I'm just saying that when people are making smart choices about when it comes to financial decision making people are losing so much of money which they shouldn't be losing 70% of the people who have FD are having FD today on a lower interest rate versus the rate that they can get anywhere else even of that 70% half of the
people can get better interest in the same bank and they don't know yeah nobody will communicate to them these are the calls where people don't take and where we feel that they are missing out a larger opportunity and the goal is to make India wealthier by making those small smart choices when it comes to a large amount of their capital and how are you want to make money in all of this see eventually I think every company will make money by building a by manufacturing a product like in mutual funds the most amount of the
money will be made by the manufacturer which is the AMC's mutual funds in uh stocks the most amount of money is made by the companies J stock listed right in bonds the most amount of the money is being made by the issuer who is issuing that right so manufacturing is the best way to go about it but the only problem that anybody must be facing who are into the same business whether you build the distribution first or you start manufacturing I think people have taken different approaches of doing things I think our approach is to
build the distribution and get that and we said that which is India's favorite asset class today it's F right I said that we start with that it's a simple product it's a very unique stage right now where stocks are at the alltime high yeah and interest rates are also at the alltime high right over time this will change that maybe after a year or so the rates will start going down and we believe this is a very good time for Indian people to start booking long-term fds so that they capture the highest interest rates before
the rate starts going down and so I think keeping all of these Tailwinds in mind we thought that starting with an FD product for the larger India uh is the most important thing [Music]
