Ever since the Gamestop fiasco last year, more and more people are turning to stock trading to supplement their income, with the sector piquing the interest of south east asia’s youth. While companies like Robinhood in America and Groww in India have been witnessing exponential returns since the last year, stock trading is still in its nascent stages in a big part of the world. Pakistan, for example, is still learning the ropes of stocks, and leading the charge in the country is KTrade-the Robinhood of Pakistan. Today, the company has announced that it has raised $4.5Mn from global investors, as it continues to add more users everyday.
The round, which saw participation from investors in China and USA, was led by Hong Kong-based TTB Partners, and HOF Capital from New York. German fintech investor Christian Angermayer, the Managing Partner of German bank Berenberg David Mortlock, and leading Pakistani business families also participated in the round.
Stock trading has been on the rise since last year, along with cryptocurrencies, both of which provide a medium for people to supplement their income, as well as pass time in lockdowns. Moreover, with the financial world turning upside down in the last few months (Bitcoin and other cryptos witnessing unprecedented growth, as well as the Gamestop-Robinhood ordeal), more and more people are warming up to new modes of investment.
However, since traditional stock brokerage is a hassle, platforms like Robinhood, Groww, and KTrade, have been having the time of their lives.
Moreover, apart from stocks, KTrade users can also invest in bonds, commodities and mutual funds through its mobile platform. All of this has led to the company catching the eye of global investors, who want to become a part of KTrade’s goal of revolutionizing stock trading in Pakistan.
The company has reached over 200,000 users already, and wants to increase this number to 10 million by 2023. Pakistan, a country where investing is mostly limited to gold and real estate, is warming up to stocks, much like India.
This sentiment was echoed by Ali Farid, Co-founder of KTrade who commented, “People in Pakistan have traditionally turned to gold or real estate when they consider investment options. However, as the regulatory approach, authority and credibility of the Karachi Stock Exchange has grown, more people are getting comfortable with stock market investing. This is an exciting trend but accessibility to these markets remains a hurdle for millions. KTrade will enable this mobile-first population to participate in the investment opportunity. By connecting these people to companies we can drive capital trapped in unproductive assets into the formal economy which would eventually drive a virtuous cycle of economic growth and higher investments”.