Algorithmic trading platform Streak AI Technology Pvt. Ltd has raised Rs 2.25 crore ($354,600) in seed funding from Indian fintech fund and startup incubator Rainmatter, the company said.
The Bengaluru-based incubator, which is managed by stock broking firm Zerodha, has so far invested in eight fintech startups, including Tradelabs, Smallcase, Digio, Balance, Neotrade, Sensibull and Streak.
Streak was founded in August 2017 by Harsha Manohar, Vipul Divyanshu and Jayalakshmi Manohar. The Bengaluru-headquartered company helps stock brokers create algorithms for trading, without having to know how to code. The traders only need to key in technical indicators, such as stop loss and target profit percentage, and select the stocks they want to trade in.
“In NSE, algos (algorithmic trading) have taken mainstage with over 40% of cash market orders being executed by algos as of December 2017. Traders spend hours glued to screens, tracking multiple stocks and monitoring market movements, tediously trying to find trading signals. It is practically impossible to make smart and timely trading decisions without human error, especially when emotions get in the way,” said Manohar.
Streak gives its customers a platform to test the algo’s performance by monitoring data, including maximum gains, maximum loss, average gains and losses, winning and losing trade, maximum drawdown and much more, the company said.
Zerodha, which was founded in 2010 by Nithin Kamath, started the incubator in 2015. Rainmatter invests Rs 2-4 crore, each, in startups and provides them with technology infrastructure, including access to Zerodha’s client base of over 600,000 customers to test their products before launching operations.
Zerodha has never raised external funding and employs over 1000 people. It has opened up its application protocol interface, which helps other fintech trading startups to integrate their technology with Zerodha. Currently, about 500 individual developers and non-funded startups are using its APIs.
Traditionally, less than 1% of India’s population invests, either directly or through mutual funds, in the stock market. In comparison, almost half of the American population invests in stocks. While the country has 27 million demat accounts, only 100,000 are active users. Market regulator Securities and Exchange Board of India had approved online broking and trading in 2000.