Before we begin, let’s look at the smallcase journey so far -

smallcase has grown from 1.8Mn users in 2020 to 4.5Mn users in 2021, it has added 0.2Mn users every month, largely relying on product integrations with key broker partners and spreading awareness through a community of influencers.

Given India has ~60Mn active DEMAT accounts, smallcase covers just 9% of the addressable market as of today.

Where is the market headed ?

2022 is one of the most exciting financial years -

1. India is expected to have 126Mn DEMAT Accounts by Mar’23
2. More than 22 IPOs are lined up for 2022
3. Retail Investors are likely to cross 50% share of holdings
4. Fintech Industry is growing 23% YoY, making investing accessible for masses

Where do we need to get to ?

Our ambition is to get to 11.3Mn active users by Mar’23, this means we need to add 0.56Mn users every month at an aggregate level. We need to grow at 2.5X on a base that is 9% of the market already !

**What’s working in our favor ?

PMF -** smallcase is a win-win-win product for brokers, fund managers and users - brokers can offer a new way of offering existing asset classes to users and fund managers can tap into a wider pool of investors. Users on the other hand gain better returns and avoid the hassle of stock market research or potential risk.

CAC - This puts smallcase in a unique position to acquire users at ‘zero’ cost via brokers, as they earn revenue when user transacts via smallcase.

Organic Acquisition - smallcase has great organic pull on web and app, 1 out of every 4 user is organically acquired today !

So what’s stopping us ?

Awareness - smallcase has only reached 9% market share due to low awareness because of use of niche channels with low discovery rates. 90% of users told us they heard about smallcase from a friend or a social media influencer.

Activation - Our user activation rate is 10%; if 90% users never invest on the platform, smallcase can not grow beyond 10% market share of users

Retention - Our Month 12 retention rate is 15%; if 85% of activated users drop from the platform after a year, this puts pressure on acquisition and restricts market share for smallcase in the long term.

How do we solve these problems ?

Let’s compare two scenarios, below is the first scenario when smallcase grows as per current health of activation (10%) and retention (15%) metrics -

smallcase will erode most of it’s current base in next 15 months, majority new acquired users, at the expense of resources, will churn within next 2 years and acquisition efforts will have touched 80% of entire DEMAT user base within 2.8 years - i.e people will know and casually try smallcase but won’t graduate to core or power !

Scenario 2 - the new growth equation

****Our core levers of growth are acquisition and onboarding, while E&R will protect our base from churning, let’s see how this pans out over the next 12 months -

Acquisition will double down on what’s working at scale - product integrations and add new users via paid media bursts, other channels will be always on and add to long tail. We plan to improve activation to 30% by M10.

Onboarding (O) - With our new and simplified flows we want to reduce cognitive overload and enhance seamless discovery of smallcases, suited to the type of Investor, this will increase retention by 15% as per our estimates.

Engagement and Retention (E) - Users will experience the power of visualizing their goals come true with simple calculators, while reviews and community feedback on smallcases will add to a shared experience on the platform. E&R will improve retention by 12%

Alright then, the net result ?

This is how smallcase will grow with the implementation of new growth strategy -