smallcase’s core consumer pool is the folks with investment intent - i.e. DEMAT account, this pool is growing at a rate of 3Mn per month since last quarter and at an average CAGR of 70% vs LYSM. The current DEMAT accounts in India are 86Mn vs 36Mn in Jan’20.

We are taking a strategic call to exclude Non-DEMAT holders as that problem to solve is that of category leaders and large financial institutions like banks.

For TAM calculation, we have filtered for investment intent in these population brackets by projecting DEMAT accounts till Mar’23, SAM is the investors who are actively investing and SOM ambition is kept as 20% - Given smallcase has integrations with 80% of the brokers.

8.6 Cr DEMAT Accounts in India as of Mar’22, Likely to grow to 12.2Cr by Mar’23//

Top Down TAM (1)

Bottom-up TAM (1)

Source - NSDL, CSDL, Economic Survey of India, Business Standard Link to TAM Calculation and Demat projections

📆 Natural Frequency

Investment can be done in two ways -

1. SIP - Where users have to invest a fixed amount at regular intervals
2. Lumpsum - Where users can invest any allowed amount at any time of their choice

Based on user calling and secondary research, the least denominator/time frame during which a user performs the core value proposition of smallcase is once per month.

Natural frequency for smallcase - 1 month.

Go to next section