Entroq Technologies Pvt Ltd, which owns and operates the brand FlipItNews, has raised Rs 3 crore in an equity round of funding from Kotak Securities Limited (KSL). It bought a 7.50% minority stake in the company as part of its Startup Engagement and Investments initiative.
Kotak Securities, a subsidiary of Kotak Mahindra Bank Ltd, struck a definitive agreement for the acquisition, which will be completed by issuing 100 equity shares and 10,568 cumulative compulsorily convertible preference shares (CCCPS) for Rs 2,811.99 each with face value of Rs 10 and premium of Rs 2,801.99 for both equity and CCCPS to Kotak Securities.
The acquisition is slated to be completed by the end of December 2021.
The investment is in line with Kotak Securities’ strategy to collaborate with start-ups involved in innovation and product development for the financial sector, the company said in a statement on Monday.
FlipItNews, which started as news summarized in 50 words, recently also launched a social community and engagement platform called “Circle”, a marketplace platform for millennials and first-time investors.
The proceeds from the financing round will be used as growth capital to drive marketing efforts, scale-up the social community business, and enhance technology offerings, the company said.
“Simplification of stock markets is increasingly becoming paramount for retail investors, especially millennials and first-time investors. We are excited with the company’s vision and look forward to this partnership,” Jaideep Hansraj, MD & CEO, Kotak Securities said.
“...With the launch of Circle, we are successfully moving towards our goal of building a strong community of smart investors. With Kotak Securities as a mentor this is definitely the beginning of a better and brighter future,” Dipankar Biswas, Co-Founder & CEO of FlipItNews added.
FlipItNews was founded by Bharat Bhushan, and Diptanil Das and Dipankar Biswas in 2020.
The Delhi-based financial literacy start-up raised Rs 18 crore in its seed round of funding in June 2021. The financing round comprised issuance of equity and open contracting data standards (OCDS).