Susquehanna Asia VC, Prime Venture Partners, Innoven Capital, and Stellaris Venture Partners have all contributed $7 million in seed capital to Punch, a stock-broking platform. Notable angel investors Kunal Shah (founder of Cred), Vatsal Singhal (cofounder of Ultrahuman), and Nitish Mittersain (founder of Nazara Technologies) also contributed to the investment round.
The newly obtained cash will be used mostly for marketing expenses and research and development (R&D) projects that aim to improve the user experience.
Punch’s cofounder and CEO, Amit Dhakad, said that a sizable amount of the money will go toward developing new products and learning about what users and regulators want. Without overtly instructing consumers, the emphasis will be on encouraging ethical trading habits.
In 2022, Punch was established by Dhakad, Hiral Jain, Arshad Fahoum, and Ajit Dandekar. It functions as a trading platform created by Market Pulse Securities, a broker registered with the Securities and Exchange Board of India (Sebi). In addition to direct stock trading, the platform allows trading in index and stock options.
According to Dhakad, between 60 and 70 percent of Punch’s users are inexperienced, part-time traders who have been trading for less than a year. Although the organization is currently focused on options trading, cash trading will be introduced the following month. Almost 18,000 trading accounts are active on the site, which has been in beta testing for the last 18 months.
Punch has noticed that inexperienced traders continue to trade derivatives despite these legal obstacles, frequently underestimating the risks involved.
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